Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)

Research Article: 2022 Vol: 21 Issue: 1

Consumer Buying Decision Determinant: Local Fashion Brand

Mrnth Wijyningtys, Ntionl Institute of Technology Mlng

Whyudi Wibowo, Widy Mndl Surby Ctholic University

Kukuh Lukiynto, Bin Nusntr University

Cittion Informtion: Wijyningtys, M., Wibowo, W., ? Lukiynto, K. (2022). Consumer buying decision determinant: Locl fshion brnd. cdemy of Strtegic Mngement Journl, 21(1), 1-16.

Abstract

The development of local brands in Indonesia has overgrown in this decade. Indonesian people already have an awareness of the importance of using domestic products. One of the local products that are in demand is watches with the Lancelot brand. When deciding to buy a product, consumers are influenced by many factors, especially new local brands. So, this study aims to determine the extent to which Brand Trust, Brand Image, Product Quality, and Price affect consumer decisions to buy Lancelot brand watches. Quantitative methods were used in this study with a survey distributing online questionnaires; it was found that 233 respondents had bought this local product. From the results of statistical analysis, it was found that all the factors tested had a positive and significant influence on consumers in determining local brand purchasing decisions. The implication of this research is to provide evidence to local brand producers to increase consumer confidence by maximizing the image and product quality and conformity with the price.

Keywords

Locl Brnd, Imge, Vlue, Price, Consumer Behviour.

Introduction

In this er, fshion is current trend for people of ll ges. Mny brnds showed groundbreking design for their product lineups. Thus, when the design went virl, people opted for buying tht brnd; it doesn't men tht locl brnds, the products mde in our own country, with world-clss mteril, skilled lbour, nd incredible product design, couldn't compete. Mny people considered or lbeled locl brnds with terrible design nd wrong product qulity in the previous yer. Moreover, tht stigm soon is bout to chnge. Since the lst couple of yers, the rise of locl brnds in Indonesi hs proven tht products mde in Indonesi re s good s the products produced in the foreign country. The brnds' design proves tht they could compete with brnds from other countries while still mintining their brnd identity (New norml fshion trends: The rise of sustinble fshion, 2020).

The fshion industry ws fcing severe chllenges. Mny globl brnds &ndsh; especilly fst fshion brnds &ndsh; re closing stores nd hlting production. t the sme time, this presents significnt opportunity for locl brnds. The rise of locl brnds could lso be n outcome of the pndemic, s consumers hve lso become more intelligent nd more conscious nd will only buy from brnds tht shre similr vlues. Informtion from Ktdt stted tht fshion or other relted items re clsses of merchndise nd goods most populr by individuls in Indonesi in web-bsed shopping in Indonesi. Dels for this clss reched up to the US $2.47 billion, or round Rp 32 trillion.

These locl brnds hve gined the dvntge of the rising of the fshion industry. Especilly in the wtchmking industry, there is huge mrket in Indonesi. The dt shown below proves tht the fshion industry in this prticulr section: snekers re trendy. It shows mssive mount of sles in the lst couple of yers in vrious e-commerce pltforms vilble in Indonesi. The survey conducted by Jkpd.net revels tht people interest in locl brnds is reltively high. 59.6% of respondents clim to follow the current trends of locl fshion brnd in Indonesi. (Jkpd, 2015). Furthermore, ccording to the survey reserch, socil medi is the most effective pltform for conducting sles promotion.

s more nd more people re strting their brnd. It cretes mny employment opportunities for mny people. Since the wtch industry is reltively new nd fresh in Indonesi, there is lot of segment nd mrket tht they cn intercept. Dhrmwn Tnoto creted Lnccelot in 2013, strting his business online nd through socil medi, nd it hs since discovered lot of mzing fcts bout the fshion industry, especilly in the field of wtches in Indonesi. By conveying the timeless concept nd qulity, Lnccelot could finlly chieve to rech the foreign mrket. One might sk how lrge country with pproximtely 240 million with severl islnds, pproximtely 17,504, nd 1,340 ethnic tribes with rich nturl resources bundnt in Indonesi do not hve the originl brnd. (Lnccelot, 2019) Thus, Lnccelot ws born. Out of the simple nd yet incredible ide to crete brnd tht one dy could represent Indonesi.

Mny fctors re tken into considertion by consumers before deciding to buy product (Redjo et l. 2020; Wijyningtys 2017; Wijyningtys et l., 2019; Wijyningtys ∓ Ninggoln 2020). Therefore, entrepreneurs must be observnt in seeing wht fctors must be considered to ttrct consumers. Demnd for product tht is interesting or needed by consumers mkes compnies engged in vrious fields competing to improve the qulity of their products (Lukiynto ∓ Wijyningtys, 2020). Product qulity is combintion of trits nd chrcteristics tht determine the extent to which output/product cn meet the requirements of needs or ppel to customers (Lupiyodi ∓ Hmdni, 2006).

Previous reserchers hd conducted vrious studies estblishing the ssocition between brnd trusts nd buying decision. For exmple, lwi (2016) exmined the effect of buying decision on ir conditioning products in Mlysi by plcing brnd trust s the independent vrible. The result shows tht brnd trust cn influence consumer’s buying decision in positive nd significnt direction. Moreover, ccording to Lee et l. (2014), due to the different usge of the phrse brnd imge, there re restrictions on the wy the concept cn be ssessed. The vritions in definition confuse brnd imge mesurement nd, subsequently, brnd equity. Without definitionl consensus, the mesuring nd mngement of brnd imge re not possible. Brnd imge cn be defined consistently tht reserchers cn use nd pply; mesure of brnd imge could be developed. Moving beyond the brnd imge, mrketers would be closer to understnding how to build brnd equity.

Therefore, from the bckground described previously, the objective of this study is to nlyze the impct Brnd Trust, Brnd Imge, Product Qulity, Price towrds Consumer’s Buying Decision on Lnccelot Wtch Brnd, s locl brnd fshion in Indonesi. The outcome of this reserch ws hoped will be ble to give cdemics nd prcticl benefits. For cdemic, this reserch could be reference source for future reserchers exploring the connection between Brnd Trust, Brnd Imge, Product Qulity, nd Price vribles towrds the buying Decisions of prticulr product or service. Furthermore, this reserch could further understnd the vribles or elements tht ffect the Buying Decision. s for the prcticl benefits, this reserch could help the business mnger better understnd how Brnd Trust, Brnd Imge, Product Qulity, nd Price influence the Consumer’s Buying Decision of product or service.

Literture Review

Consumer Buying Decision

The consumer buying decision selects two or more options to crry out purchses (Chng ∓ Wng, 2011). The consumer buying decision is significnt when there re mny options with the sme function for the goods nd services (mron ∓ Usmn, 2016). The consumer buying decision mde by consumers is bsed on vrious motives nd specific impulses. The stronger the consumer’s impulse nd motives, the stronger the decision to buy prticulr product (Bi, 2016), thus, compnies must be ble to cpture consumer’s impulse nd motive them to mke purchses (Dillo, 2013). They re lso required to mke product tht cn meet the expecttions nd motives of consumers to buy the goods. It is not esy for mnufcturers to crete products tht re lwys in consumer’s demnd. However, in principle, it might be possible to do so if producers cn cpture consumer behviour in determining their choices.

The previous reserch of mron (2018), focuses on testing the model of consumer’s buying decision of Multi-Purpose Vehicle (MPV) crs. The reserch model involved four independent vribles of brnd imge, brnd trust, product qulity nd price nd the dependent vrible of buying decision. The study conducted on 115 smples, nd bsed on the journl, the resercher found tht the four independent vribles were proven to positively nd significntly influence consumers' decision to buy MPV crs.

In the second previous reserch of Rhmwti et l. (2018), the vribles exmined in the reserch re Product Qulity, Brnd Trust, Price, Sles Promotion, nd Purchse Decisions. The gol of this reserch is to explore the decision to purchse Royl Residence Housing products in Surby. The explortion of Royl Residence Housing products is crried out using quntittive reserch methods. Therefore, Dt testing is conducted by questionnires nlyzed using sttisticl nlysis such s vlidity nd relibility tests nd multiple liner regression nlysis. The reserch questionnire ws conducted with the popultion in this study were ll consumers of PT. Propnex Relty Tunjungn with totl smple of 100 people. The outcome of this reserch showed tht product qulity, brnd trust, price, nd sles promotion together or simultneously hve significnt effect on purchsing decisions.

The Reltionship of Brnd Trust nd Buying Decisions

Brnd trust is the view of consumers towrds prticulr brnd (Pvlou et l., 2007; Morgn ∓ Hunt, 1994). Consumer outlook is bsed on the informtion nd experiences tht led to product performnce. The trust given to brnd refers to consumers' expecttions tht product cn fulfill its promise mde to consumers (Hn ∓ Sung, 2008). Product performnce is very close to the trust in the brnd. Trust is built by the hope tht the other prty will ct following the needs nd desires of consumers (Hn ∓ Sung, 2008). Previous reserchers hd conducted vrious studies estblishing the ssocition between brnd trusts nd buying decision. For exmple, lwi (2016) exmined the effect of buying decision on ir conditioning products in Mlysi by plcing brnd trust s the independent vrible. The result shows tht brnd trust cn influence consumer’s buying decision positively nd significntly (lwi, 2016). In ddition, the reserch of Chinomon lso used the vrible of brnd trust to test the product’s buying decision in South fric (Chinomon, 2016). The reserch results showed tht brnd trust influences buying decision in positive direction.

The Reltionship of Brnd Imge nd Buying Decisions

Dillo (2013) put brnd imge s consumer understnding bsed on the type of prticulr brnd. When it is incresingly embedded in consumers' memory, brnd will become closer to the consumer’s choice. Therefore, good brnd imge should be introduced to consumers continuously to form memory ttched to them (Lu ∓ Phu, 2007). The emerging brnd impression in consumer’s memory increses long with the incresing number of consumers to experience the brnd (Rubio et l., 2014). Furthermore, when the brnd ssocition is interconnected strongly, the brnd imge tht is formed will lso become more powerful (Lu ∓ Phu, 2007). The reserch conducted by Wtson et l. (2015) investigted the influence of brnd imge on brnded pprel products in Germny. The results found tht brnd imge cn influence buying decision in positive direction.

The Reltionship of Product Qulity nd Buying Decisions

Product qulity is the products bility to stisfy consumer’s needs or desires (Nilsson, 2001). Mrketers who ignore the qulity of the products or services offered would lose s consumers become disloyl (mron, 2018). s result, products or services will tend to decline (mron ∓ Mhmud, 2017). When mrketers py ttention to qulity, consumers will be hppy to buy product or service. Product qulity is the totlity of the fetures nd chrcteristics of the products or services tht depend on their bility to stisfy stted or implied needs. Reserchers hd mde vrious studies ssociting product qulity with buying decision to go long with vrious spects. For exmple, Beneke exmined the effect of product qulity on buying decision of other household goods. The results showed tht product qulity hs positive effect on buying decisions (Beneke, 2013). Then, the reserch conducted by Kinpour found tht product qulity hs positive significnt effect on the postgrdute students of Universiti Teknologi Mlysi (Kinpour, 2014).

The Reltionship of Price nd Buying Decisions

Price is n element tht genertes revenue for producers of goods. Price is the mount of money chrged for the product or service purchsed by customers. It is flexible mrketing element tht is esily chnged ccording to time nd plce. Price is not only in figures of the product lbel, but it cn tke mny forms in performing mny functions. Rent, wges, rtes, storge costs, nd interest re the prices to be pid to obtin goods. Previous reserchers hd conducted vrious studies ssociting prices nd buying decision. For exmple exmined the effect of price on supermrket consumer’s buying decision in Germny. The result shows tht competitive price hs significnt nd positive effect on buying decisions. lso competitive price hs positive effect on buying decisions.

Reserch Method

Reserch Design

The reserch design is prt of the reserch structure tht will guide the process of this reserch from the reserch results towrds into vlid, objective, efficient nd effective. The methods tht will be used in this reserch is through quntittive method. This reserch conducted survey method tht will collect the dt needed by distributing questionnire to selected respondents tht mtched the criteri of the resercher. Vrible tht will be nlyzed in this reserch is Brnd Trust, Brnd Imge, Product Qulity, Price nd Consumer Buying Decision.

Type of Dt, the Dt Source, nd Dt Collection

ccording to Um Sekrn, quntittive dt re dt in the form of numbers s generlly gthered through structured questions (Um Sekrn, 2016). Objective mesurements nd sttisticl, mthemticl or numericl nlysis of dt for the reserch using the quntittive methods re obtined by surveys, questionnires nd surveys or by modifying pre-existing sttisticl dt using computtionl techniques re emphsized through quntittive methods.

In collecting dt, the resercher used 2 types of dt which re primry dt nd secondry. Primry dt referred to in this study re opinions obtined directly from consumers for purchsing Lnccelot Wtch. Dt obtined from consumers' nswers to sttements in the questionnire given to consumers. questionnire or list of questions tht were distributed to respondents to obtin informtion, views, nd responses to the object under review ws the dt collection method used in this study. questionnire is dt collection tool or instrument using list of questions or sttements distributed to respondents (Sugiyono, 2014). Secondry dt obtined from other sources of respondents who were the trget of the study, in this study secondry dt in the form of profiles, compny gols nd other informtion bout Lnccelot Wtch re needed in this study.

Popultion, Smple, nd Smpling Techniques

In quntittive reserch, popultion nd smple re two things tht re very importnt. ccording to Srjono ∓ Julinit (2011) the popultion is ll the chrcteristics tht re the object of reserch, where these chrcteristics relte to ll groups of people, events, or objects tht re the center of ttention for reserchers. The popultions tht will be the smple in this study re ll customer of Lnccelot Wtch Indonesi. The smpling technique used is non-probbility smpling. In this reserch, quntittive methods were used in which n online questionnire ws built using Google forms to evlute the theoreticl structure nd hypotheses. The explntion for following this pproch is tht, regrdless of plce nd time, the survey ws crried out using questionnire designed to rech more respondents. s it is online nd cn be ccessed t the time of the respondent, the questionnire lso sves time for prticiption. The chrcteristics of the respondents in this reserch smple collection s follows:

1. Customer of Lccelot Wtch Indonesi. 2. ge 15-50. 3. Bsed in Surby or Sidorjo. 4. Hve purchsed one or more wtches. 5. Hve received ny type of promotion or informtion bout Lnccelot wtch brnd.

Vrible Mesurement

This reserch will be conducted using the Likert scle method. nd ccording to nkur Joshi (2015) Likert scle s the nlyticl tretment nd interprettion with Likert scle lrgely depends upon these diversities -Symmetric versus symmetric Likert scle- If the position of neutrlity (neutrl/don't know) lies exctly in between two extremes of strongly disgree (SD) to strongly gree (S), it provides independence to prticipnt to choose ny response in blnced nd symmetric wy in either direction. Therefore, the nswers to the questionnire will vry s follows:

1. The option of strongly gree (S)       : 5 score points 2. The option of gree ()                      : 4 score points 3. The option of neutrl (N)                    : 3 score points 4. The option of disgree (D)                  : 2 score points 5. The option of strongly disgree (SD)   : 1 score points

Instrument Vlidity nd Relibility

ccording to Sekrn, vlidity is proof tht the instrument, technique, or process used to mesure concept ctully mesures the intended concept. (Um Sekrn, 2016) The im of vlidity test is to determine the vlidity of no sttement objects. Mny of the structures of interests were evluted using convergent nd discriminnt vlidity. If the loding fctor vlue is greter thn 1.96 of the criticl vlue nd the uniform loding fctor is less thn 0.5, vrible my be considered true for the ltent construct.

ccording to Sekrn, is mesurement showing the extent to which these mesurements re crried out without bis or error free. (Um Sekrn, 2016) s result, it's criticl to ensure tht mesurements re ccurte over time nd through the instrument's vrious objects. The im of relibility test is to see whether nyone nswers the sttement items in questionnire correctly. If the construct's relibility vlue is >0.7 nd the mesurement of vrince derived is 0.50, the construct's relibility is sid to be fir.

Dt nlysis Technique

The dt nlysis method is used descriptive nd correltion nlysis. The descriptive nlysis will perform with the Likert Scle, which mesures scores from 1 to 5, with 1 indicting strong disgreement nd 5 indicting strong greement. The intervl cn be used to clculte the respondent's definition, which will be written s:

With the intervl of 0.8 then the criteri of men vlue cn be rrnged by Tble 1. ccording to Gozli, the method of detecting multicollinerity done by looking t the vrince infltion fctor (VIF), nmely with see wht the tolernce vlue is (1-R2 uxilry) nd wht the VIF vlue is. If Tolernce is t <0.1 or if VIF is >10, then multicollinerity occur (Ghozli, 2013). Menwhile, for hypothesis testing, T test nd F Test will use in this study. T Test, this test ims to exmine whether the independent vribles (brnd trust, brnd imge, product qulity, nd price) on the dependent vrible (consumer buying decision) hve prtil or seprte influence. The F test is used to determine the effect of the Lnccelot Wtch Purchse process bsed on brnd trust, brnd imge, product qulity, nd price), s simultneous consumer buying decision process.

Hypotheses

From the reserch bckground nd the literture review described in the previous section, the objective of this study is to nlyze the impct Brnd Trust, Brnd Imge, Product Qulity, Price towrds Consumer’s Buying Decision on Lnccelot Wtch Brnd. Therefore, this reserch proposed positive reltionship between vribles developed well with Lnccelot Wtch buying decision s follows:

H1 There is positive nd sttisticlly significnt reltionship between brnd trust with consumer's buying decision of Lnccelot Wtch

H2 Brnd Imge hs positive nd sttisticlly significnt effect on consumers in deciding to buy Lnccelot Wtch brnd

H3 Product qulity is sttisticlly significnt nd positively relted with the buying decision of Lnccelot Wtch

H4 Price hs positive nd sttisticlly significnt effect on consumers in deciding to buy Lnccelot Wtch brnd

From the reserch bckground nd the literture review described in the previous section, the objective of this study is to nlyze the impct Brnd Trust, Brnd Imge, Product Qulity, Price towrds Consumer’s Buying Decision on Lnccelot Wtch Brnd. Therefore, this reserch proposed positive reltionship between vribles developed well with Lnccelot Wtch buying decisions follows:

To demonstrate the relationships of variables in the analysis, the theoretical structure of the above-mentioned hypotheses is drawn in Figure 1.

Figure 1: Hypotheses.

Result and Discussion

Respondents Characteristic

This section addresses data analysis and results from 245 online questionnaires using Google Form by the buyers of Lanccelot Watch. From the 245 respondents, there were 233 samples who met the requirements based on the preliminary questions that had been given in the questionnaire. The questionnaire distributed to respondents according to the characteristics that have been compiled in the previous chapter which is: Customers of Laccelot Watch Indonesia, age, residency, have a purchased one or more watches, have received any type of promotion or information about Lanccelot watch brand.

Table 1.
Average Interval Score Of Research Variables
Interval Category
1.00 ? 1.80 Strongly Agree / Very High
>1.80 ? 2.60 Agree / High
>2.60 ? 3.40 Neutral
>3.40 ? 4.20 Disagree / Low
>4.20 ? 5.00 Strongly Disagree / Very Low
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