THE EFFECTS OF PRICE AND PRODUCT QUALITY ON THE PURCHASING DECISION OF KARYA ABADI PRODUCTS

Abstract

This study is entitled “The Effect of Price and Product Quality on the Purchasing Decision of Karya Abadi Products.” This study aims to investigate the influence of Price (X1) and Product Quality (X2) on the dependent variable of Purchasing Decision (Y). The analysis used in this study is multiple linear regression analysis. Multiple linear regression analysis is used because it functions as an outcome predictor of the dependent variable when the independent variable changes. The population used in this study is everyone who purchases Karya Abadi products from the store in Bogor, West Java. This population is infinite. According to Umar’s formula, the number of sample needed in this research is 97 respondents. Source of data used is primary data, which is obtained through direct distribution of questionnaires to respondents. The questions contain the prices and product quality of Karya Abadi. The question model is a closed-question questionnaire with a five-point response scale. The results of the questionnaires are then recapitulated using Microsoft Excel and analyzed using SPSS 17.0 program tools. Results obtained from the analysis of SPSS show that the price and product quality variables simultaneously influence Karya Abadi’s producs purchasing decision. Price and product quality also have partial influence on the product purchasing decision