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

Research Article: 2021 Vol: 20 Issue: 2S

Impulsive Buying of Five Star Hotel Jakarta: Effect New Normal Era Mediated of Price and Promotion

Amelda Pramezwary, Pelita Harapan University

Juliana, Pelita Harapan University

Rudy Pramono, Pelita Harapan University

Jimmy Muller Hasoloan Situmorang, Pelita Harapan University

Sheren Laurensia Salim, Pelita Harapan University

Felicia Christina, Pelita Harapan University

Keywords

Impulse Buying, New Normal Era, Price, Promotion, Perceived Risk Theory

Abstract

Consumers experience a sudden, often powerful, and persistent urge to buy something immediately. The drive to buy is complex and may stimulate emotional conflict. Impulsive purchases tend to occur with less concern and consequence. The research objective was to analyze the effect of applying the new normal era on price and promotion and analyze the effect of price and promotion on impulsive purchases to examine the indirect impact of applying the new normal era on impulsive purchases.Based on the findings of this study and the perceived risk theory, a research framework on customer psychology from an impulsive buying perspective has been developed. P.L.S. was used to collect data from 132 respondents. The structural equation modeling was carried out. In addition, a hierarchical regression model was demonstrated for testing the mediating effects. The results indicate that the application of the new normal era has a positive and significant effect on the room prices of five-star hotels the implementation of the new normal era has no significant effect on promotions, the room prices have an impact on impulsive buying, the promotion has a positive effect and significant towards impulsive buying, there is an indirect and significant influence on the application of the new normal era to impulsive buying.

JEL Classifications Code:

M10, M30, M31

Introduction

Impulsive purchasing has been identified as a major problem by consumer behavior researchers (Sharma, Sivakumaran & Marshall, 2010), and it is an important part of the consumer buying process. Covid 19 is the most daunting obstacle that the government and industry face (Hall et al., 2020); Covid 19 causes many major psychological challenges, social and professional shifts, such as job loss, decreased savings, anxiety, and tension, as well as an uncertain future (Hall et al., 2020). And issues with physical and emotional wellbeing (Bradbury Jones & Isham, 2020). As a result of the COVID-19 pandemic, consumers' shopping habits, expenditure, and consumption patterns have been disrupted by social distancing and mandate lockdowns (Donthu & Gustafsson, 2020; Kim, 2020; Sheth, 2020) In demographic change and advance technology, new ways of spreading or coping with fear and perceived threats emerge, resulting in the development of new consumer behaviors. There is little research about how anxiety in the health care industry can cause consumers to make impulsive purchases. Anxiety is a universal trigger that can rise in response to a threat of danger (Ohman, 2000) or misinformation during the COVID-19 pandemic (Wang et al., 2019); the threat of fear can be psychological, physical, or emotional (Samson and Voyer, 2012). Fear's allure draws a person's perception of something to evoke a threatening feeling, causing him to take defensive action (Kok et al., 2018). Hawkins Stern proposed the impulsive buying theory in 1962, and it is the most appropriate theory for achieving the goals proposed in this research. This theory suggests various scenarios in which customers make impulsive purchases. This hypothesis contradicts Maslow's motivation and needs theories, which suggest that consumers are rational and economical, and that their buying decisions are predictable (Dutta & Mandal, 2018). According to Kim and Han (2020), price discounts will play a significant role for both retailers and consumers when customers are more interested and committed to fair trade. During the COVID-19 pandemic, it's critical to consider how various forms of fear and perceived danger can contribute to impulsive purchasing. Furthermore, there is a small understanding of how the fear of Covid 19 induces people to stay at home, wash their hands, save their loved ones, and save the medical staff. Even in unpredictable and frightening situations, leads to the customer's emotional intention to buy an additional product. Customers stop purchasing in unpredictable circumstances, according to previous research (Hsin Chang & Wang, 2011; Chen and Wang, 2016). Fear of disease, as well as out-of-stock products, can lead to rash decisions.

As a result, exploring this context will assist in the creation of a theoretical understanding of how anxiety and perceived danger can contribute to impulsive purchasing behaviour. Customers are rational, according to previous research, and purchase goods only when they are needed (Hsin Chang & Wang, 2011; Chen & Wang, 2016). However, there is a lack of understanding of why and how different types of fear and perceived risk will affect customers' rational and economic buying decisions during the COVID-19 pandemic's confusion and fear. Impulsive purchasing is seen as a concern by consumers, but it is a critical tactic for retailers looking to increase sales volume (Xiao & Nicholson, 2011; Akram et al., 2018). Because of its relevance, researchers have studied impulsive purchasing behavior from multiple angles for decades (Xiao & Nicholson, 2011). Since researchers' interest in impulsive purchasing activity has not waned, impulsive buying is a complex and compatible mechanism with conventional economics' rational choice model (Amos et al., 2014; Xiao & Nicholson, 2011). They are putting in extra effort to find less expensive alternatives (Amos & colleagues, 2014).

Researchers have examined impulsive buying from multiple perspectives for decades, and inconsistencies remain in understanding this concept. The continued increase in COVID-19 transmission in Indonesia, including Jakarta, has disrupted various economic and social situations throughout the industry. For example, activities at the center of the economy and one of the hotel industries are deserted by tourists (Ichsan et al., 2020). The occupancy rate of star hotels in 2019 was more significant than in 2020 when the emergence of Covid 19. The government implemented policies to urge Indonesians to limit activities outside the home, school, and work from home (Yunus & Rezki, 2020). Almost all of these activities were dismissed as a policy from the government called Large-Scale Social Restrictions (PSBB) to break the chain from COVID-19 and required contributions from the community who followed the policies of the government. PSBB helps prevent the spread of COVID-19 to an area where people from that area can avoid spreading COVID-19 (Nasruddin & Haq, 2020).

According to (Januar Mahardhani, 2020) New normal in English is called New Normal. The term new normality is used for various activities that indicate a previously considered abnormal difference at this time becomes normal and has been common to do. (New Normal Matches New Normal, a Term Standardized by the Ministry of Education and Culture's Language Agency, 2020)

The application of this new normality is regulated in the Minister of Health's decree number HK.01.07/MENKES/328/2020 Guidelines for the Prevention and Control of COVID-19 in office and industrial workplaces to support sustainability in the pandemic situation that has hit the world, including Indonesia. According to Wiku Adisasmita, Team of Experts for the Task Force for the Acceleration of Handling of COVID-19, new normality is a change in behavior or arranging new behavioral lives in carrying out routine activities but required by health protocols to prevent transmission of COVID-19 (Rosidi & Nurcahyo, 2020). Implementing this new normality creates an opportunity for the hotel industry to operate again, provided that they must have sufficient knowledge and understand the health protocols that need to be applied according to government regulations (Fajri, 2020). Promotion affects consumer behavior in making decisions and makes consumers familiar with the products and services to be offered, not only that promotions are intended for consumers to be happy after buying these products and services (Efrianto, 2016). Quoted from travelingbisnis.com (Andriani, 2020), according to Hendra Natanegara, who is the general manager of the Amaroossa Grande hotel, when entering a new era of normality, there was an increase in occupancy above 50 percent, most of the interests of business, events, and staycations were due to promotions, namely discount prices for stays.

Promotion is also one of the success factors, so promotions need to be made as well as possible regarding the features of the product, its existence, and its use to encourage consumers to act. The following indicators are classified as promotions (Taali, 2018). Besides, the provision of pricing policies is also a factor influencing impulsive buying. An impulsive buying is one of the transactions made in a shop or hotel to make a decision. One of two separate mechanisms, namely unplanned buying or impulsive buying, can occur when a customer spontaneously decides to transact. Impulsive buying is an acquisition when the customer feels a sudden, often powerful urge to buy something quickly. Thus, consumers often make impulsive purchases attracted to promotions offered by companies such as discounts, lottery coupons, and prizes. Promotion is related to seller and customer communication, which seeks to change consumers' perceptions and behavior previously unfamiliar with the product or brand to know that even buyers will remember the brand/product (Pratomo & Ermawati, 2019). In addition to price promotion, the company must plan strategies for customer satisfaction and create consumer enthusiasm which is called experiential marketing. Experiential marketing is a marketing strategy to build loyal customers by touching their emotions and delivering goods and services. Consumers can differentiate the product or service they feel through experiential marketing because every company offers a different experience. To encourage customers to buy back, business people must also provide unforgettable experiences (Ferdika, 2018).

The hotel industry can boost corporate revenue through prices and promotions that have developed to be attractive through service standards. Consumer loyalty ultimately impacts consumer decisions to stay overnight (Amin, Hamdan & Yani, 2018). The formulation of the research problem does the New Normal era affects the price and promotion at five-star hotels in Jakarta? Do price and promotion affect impulsive purchases? Is there an indirect effect of the application of the new normal era on impulsive buying? The research objective was to analyze the impact of applying the new normal era on price and promotion and analyze the effect of price and promotion on impulsive purchases to examine the indirect impact of applying the new normal era on impulsive purchases

Literature Review

Researchers have looked at impulsive purchasing behaviour in a variety of ways. It is compared to unplanned purchases in the early stages of research (Stern, 1962), but then spontaneous acts are separated from unplanned purchases (Weinberg & Gottwald, 1982). Impulsive buying behavior is described by Beatty and Ferrell (1998) as behavior exhibited prior to the actual purchase and the action of purchasing a product without planning but experiencing impulsive emotions. This study explores impulsiveness and impulsiveness to buy to stay at five-star hotels in Jakarta in order to gain a better understanding of impulsive buying behavior. The temporal sequence between the input (independent variable) and the dependent variable is explained by process theory (Tsoukas, 1989; Van de Ven & Huber, 1990). As a result, it can be concluded that impulsive processes influence the impulse to purchase impulsively, and some researchers have shown in research (Wells et al., 2011; Xiang et al., 2016) that impulsive processes can occur as an input factor and the urge to buy. As the production, impulsively. An unplanned purchase, according to Hawkins & David (2013), is described as a purchase made in a store that differs from what the buyer intended when entering the store. Impulse transactions, according to Berman (2010), occur when customers buy items or brands that they had not planned to buy before or after visiting stores, reading catalogs, placing mail orders, or visiting websites. According to Bauer (1960), the majority of consumers' procurement activity is potentially risky because buying decisions can have uncertain or unfavorable consequences. Uncertainty about the occurrence of negative consequences may lead to a sense of danger (Bauer, 1960). Perceived risk, according to Cox & Rich (1964), is comprised of expectations of the value and uncertainty of purchasing decisions. Individuals make choices based on a value function in ambiguous circumstances, according to prospect theory (Kahneman & Tversky, 1979). When faced with risky choices, people, according to this theory, are more open to the benefits and drawbacks. Furthermore, during the decision-making process's assessment stage, the decision-maker requires a reference point to serve as the foundation for measured losses and benefits, and the most significant point that is consistent with the principle of perceived sacrifice and perceived benefits in the perceived value theory.

In developing tourism in the new normal era, that new normality is not in the context of returning to normal so that the government decides the right strategy so that people can return to their activities even though the pandemic has not yet been completed and is likely to last for a long time so that the new normality applies when and after the pandemic has passed. A pandemic is a disease outbreak that occurs rapidly throughout the world, this disease has become a common problem for all citizens of the world. The implementation of the new normality protocol is carried out so that the tourism sector and the economy can revive, such as returning to the operation of restaurants and hotels (Ni, Sri & Dewi, 2020). Meanwhile, according to Wiku Adisasmita as the head of the team of experts handling COVID-19 in the Indonesian information portal, the new normality is a transition of behavior to carry out daily tasks in accordance with the implementation of health protocols to prevent COVID-19 transmission, which is mandatory in this hotel industry (Maulida, 2017).

A price is a monetary unit or other measures (including other goods and services) traded to obtain ownership rights or use of goods or services. This is the understanding of the price that experts clarify and is generally most easily understood by people in everyday life as the amount of money that must be paid to buy a product. Meanwhile, according to Kotler & Armstrong (2016), price is an amount of money that is used as a medium of exchange for products/services. The amount of value traded for the benefit or ownership of the consumer's use of the product or service.

According to Kotler & Armstrong (2016), prices vary widely, prices can determine producers' income or profit, and prices can change very quickly. Price is related to calculating the company's sales and fixing the price of goods. Because customers often compare the value received from existing products, price is an essential factor (Anggriawan & Brahmayanti, 2016) So it can be concluded based on the above definition that price is the value to pay. Several price factors affect directly or indirectly. Factors that directly affect include the price of raw materials, government regulations and marketing costs, and production costs. Indirect factors include products that are sold the same as other competitors, discounts for distributors and consumers, the effect of price on the relationship between products, substitutions, and complementary products (Rohaeni, 2016). Pricing is an essential part of the marketing plan and is decided by management itself. With the pricing that is made, it must cover the costs that will be incurred and generate optimum profit. If the sale price is too high, the buyer will undoubtedly reduce it so that the total cost may not be covered and instead results in losses (Julvirta, 2017). Promotion is something that cannot be separated in business because promotion has a long-term effect in gaining consumers and popularity. For a product or a company, in this case, several promotional mixes are needed (Prawira, 2019).

According to Kotler & Armstrong (2016), promotion is an activity that refers to the communication of the benefits of a product and persuading consumers to buy the product. It is introducing a product or service so that customers buy the product. According to Taali (2018), promotion is intended to provide information about the features of a product or service offered for use and its existence.

Previous Research

Efrianto (2016) price, place, promotion, and service significantly affect consumer decisions to stay at The Alana Hotel Surabaya. This condition shows that the better the pricing strategy applied, the hotel's location, the promotional rates that have been carried out, and the services provided by the hotel will increase the consumer's decision to stay at the hotel. A study from (Sari & Suryani, 2014) produces a positive and significant effect on Ramayana Mall Denpasar's impulsive purchases. Retail service variables have a positive and significant impact on investments. According to (Adisasmita, 2020) the meaning of new normal can be interpreted as a change in the community's behavior to continue carrying out normal activities. This condition is an adaptation of new habits with people who can still carry out activities during this pandemic by implementing good and correct health protocols according to the government's appeal. According to the study, according to Wiyono (2017), most consumers do not make written plans when shopping, so they often buy products that are outside of the initial planning, which is strengthened by the existence of promotions. When consumers buy a product, consumers do not think about whether they need it. Conversely, it can result in immediate purchases to fulfill buying desires leading to impulsive buying behavior (Verhagen & van Dolen, 2011).

From the description above, the following hypothesis can be made:

H1  The application of the new normal era has a significant positive effect on the prices of five-star hotels in Jakarta

H2  The application of the new normal era has a positive and significant impact on the promotion of five-star hotels in Jakarta

H3  The prices of five-star hotels in Jakarta have a positive and significant effect on impulsive purchases

H4  The promotion of five-star hotels in Jakarta has a positive and significant effect on impulsive purchases

H5  There is an indirect effect of the application of the new normal on impulsive purchases

Methods

This study uses a quantitative paradigm to obtain numeric data or numbers to be outlined in a questionnaire. This research is a descriptive quantitative study examining the dependent variable's independent relationship (Sekaran & Bougie, 2018). The sampling technique used non-probability sampling with a population D.K.I. Jakarta consumers who have stayed at five-star hotels. Roscoe (1975); Sekaran & Bougie (2018) suggest that for multivariate research, the sample size should be several times (preferably ten times or more) larger than the number of variables studied. The authors collected 132 respondents to fill out the questionnaire data. The questionnaire was distributed online using a 1-6 point Likert scale. The statistical analysis is based on SmartPLS. This study's latent variable consists of three variables: new normal era variable are independent variables; price and promotion are mediation variables, impulsive buying is the dependent variable.

Results and Discussion

Results

The data that has been obtained in the research are then analyzed using the instrument test. In this study, the instrument test was carried out to see the validity and reliability of the data obtained in the study with existing data. From the validity and reliability tests that have been obtained, it is then used as reference material for use in further tests. The variables tested in this study are era new normal, marketing mix (price and promotion), and consumer impulse purchases. In distributing questionnaires regarding marketing mix testing (prices and promotions), it is offered affordable with conditions where the questionnaire distributed by researchers is 62.4% with the age of 18-21 years which means this does not represent that the prices and promotions offered by five-star hotels affordable due to factors such as someone aged 18-21 years doing lodging with parents, or it can happen by doing residence with friends so that there is no need to pay in full.

Structural Model Design (Inner Model)

The latent variables and their manifest variables are as follows:

  1. Exogenous latent variables The New Normal Era has seven indicators including employees who are in charge of maintaining sanitation and wearing masks, cleaning public areas all the time using disinfectants and providing hand sanitizers, making payments online so that there is no physical contact, implementing social distancing and physical distancing in every area and facility, staff measure body temperature before work, feel confident staying at a hotel that informs you about the implementation of health protocols, feels safe when staying at hotels that apply health protocols.
  2. Price mediation variable has five indicators, namely, 5-star hotels provide a discount for staying at a specific time, the price of staying at a five-star hotel according to the quality of service offered, the price offered by 5-star hotels is by the facilities provided. The cost of a five-star hotel influences the decision to make a purchase.
  3. Promotion mediation variables have seven indicators, including gathering information about promotions offered by five-star hotels in the new standard era, knowing advancements through print or electronic media, knowing promotions through direct marketing, knowing promotions through word of mouth, being interested in star hotel promotions five, often buy a product or service because of the advertising, knowing the brand of a product through promotion
  4. Endogenous latent variables for impulsive purchases developed by (Rook & Fisher, 1995) are also used for other studies (Fenton et al., 2012; Muratore, 2016).

When evaluating the measurement model for consumer respondents, the indicators used are valid and reliable. It can be seen from the structural model that is by this study.

Figure 1: Design Of The Research ModelSource: obtained from primary data (2021)

Evaluation of Measurement Model (Outer Model)

The evaluation of the measurement model is divided into three stages: the convergent validity test, the discriminant validity test, and the composite reliability test.

A correlation between the indicator score and the construct score can be used to test the validity of reflective indicators. Reflective indicator measurements show a change in an indicator in a construct when other indicators in the exact construct change. The following are the results of calculations performed with the innovative computer program PLS 3.0. Innovative computer program.

Table 1
OUTPUT RESULT FOR OUTER LOADING
Construct Impulsive Buying New Normal Era Price Promotion
H2     0.776  
H3     0.812  
H4     0.837  
KB2   0.758    
KB4   0.774    
KB6   0.832    
P6       0.8
P8       0.823
P9       0.704
PI1 0.889      
PI2 0.875      
PI3 0.924      
PI4 0.872      
PI5 0.731      
PI6 0.869      

Figure 2: Output Loading Factor Modeling

Source: obtained from primary data (2021)

According to (Ghozali & Latan, 2015), a correlation can be said to meet convergent validity if it has a loading value greater than 0.5. The output shows that the loading factor provides a value above the recommended value of 0.5. So that the indicators used in this study have met the convergent validity.

Discriminant Validity Test

In the reflective indicator, it is necessary to test the validity of the discrimination by comparing the cross-loading table values. An indicator is declared valid if it has the highest loading factor value for the intended construct than the other constructs' loading factor value.

Table 2
Cross Loading Output
Construct Impulsive Buying New Normal Era Price Promotion
H1 0.229 0.774 0.261 0.169
H3 0.504 0.832 0.353 0.348
H4 0.405 0.136 0.298 0.373
KB2 0.015 0.044 0.281 0.072
KB4 -0.101 0.173 0.301 -0.029
KB6 0.057 0.005 0.453 0.227
P6 0.442 -0.043 0.406 0.8
P8 0.486 -0.061 0.43 0.823
P9 0.36 0.102 0.354 0.704
PI1 0.889 0.018 0.37 0.49
PI2 0.875 0.623 0.447 0.498
PI3 0.924 0.622 0.468 0.507
PI4 0.872 0.638 0.434 0.455
PI5 0.731 0.637 0.373 0.385
PI6 0.869 0.767 0.392 0.524

Reliability Test

According to Hair, et al., (2019) states that a latent variable can be said to have good reliability if the composite reliability value is greater than 0.7 and the Cronbach's alpha value is greater than 0.7. The AVE value = 0.5 according to Hair, et al., (2019), it is stated that each construct meets the convergent validity requirements.

Source: obtained from primary data (2021)

Table 3 shows that all latent variables measured in this study have Cronbach's alpha and composite reliability values that are greater than 0.7, so it can be said that all latent variables are reliable. And that all construct meet the convergent validity requirements.

Table 3
Latent Variable Reliability Test Results
Construct Cronbach’s Alpha Composite Reliablility Result  
Impulsive Buying 0.93 0.945 Reliable  
New Normal Era 0.711 0.831 Reliable  
Price 0.736 0.85 Reliable  
Promotion 0.772 0.82 Reliable  

Convergent Validity

The AVE value = 0.5 according to Hair, et al., (2019), it is stated that each construct meets the convergent validity requirements.

Source: obtained from primary data (2021).

Table 4 shows that all construct meet the convergent validity requirements.

Table 4
Average Variance Extracted (Ave)
Construct AVE Result
Impulsive Buying 0.743 Valid
New Normal Era 0.622 Valid
Price 0.654 Valid
Promotion 0.605 Valid

Discriminant Validity

The discriminant validity can be evaluated by using cross-loading of indicator, Fornell & Larcker criterion, and Heterotrait-Monotrait (HTMT) ratio of correlation. By looking at the cross-loading, the factor loading indicators on the assigned construct has to be higher than all loading of other constructs with the condition that the cut-off value of factor loading is higher than 0.70 (Hair et al., 2014; Hair et al., 2011). For conceptually similar constructs HTMT<0.90, If > 0.90 indicate discriminant validity problem (Henseler et al., 2015).

Source: obtained from primary data (2021)

Table 5 shows that the study indicators are appropriate and appropriate to test the construct because they have a discriminant value below 0.9.

Table 5
Htmt Ratio
Construct Impulsive Buying New Normal Era Price Promotion
Impulsive Buying        
New Normal Era 0.106      
Price 0.565 0.517    
Promotion 0.697 0.215 0.526  

Source: obtained from primary data (2021)

Next, the evaluation of discriminant validity uses the Fornell-Lacker criterion. According to Hair, et al., (2014), the Fornell-Lacker criterion compares the value of AVE's square root with the correlation between variables. Discriminant validity is fulfilled if the AVE's square root value for each variable is greater than the correlation value between variables in the model. In table 6, it can be seen that the value of the square root AVE of each variable is greater than the correlation value between variables. Therefore, it can be concluded that this study has met the requirements of the discriminant validity test.

Table 6
Fornell & Larcker Criterion
Construct Impulsive Buying New Normal Era Price Promotion
Impulsive Buying 0.862      
New Normal Era 0.005 0.788    
Price 0.478 0.381 0.809  
Promotion 0.556 0.145 0.375 0.778

Evaluation of the Structural Model (Inner Model)

Evaluation of the structural model in S.E.M. with P.L.S. is carried out by performing the R-Squared (R2) test and significance test through the path coefficient estimation.

Multicollinearity Testing

According to (Hair et al., 2019), criterion Multikolinearity > 10: Critical, 5-10: probable, 3-5: suggested, <3: ideal

Source: obtained from primary data (2021)

Table 7 shows that there is no multicollinearity problem, and the independent variables are not correlated.

Table 7
V.I.F.- Variance Inflation Factor
Construct Impulsive Buying New Normal Era Price Promotion
Impulsive Buying        
New Normal Era     1 1
Price 1.164      
Promotion 1.164      

R Squared (R2) Testing the Coefficient of Determination

Output for R2 value using smartPLS 3.0 computer program is obtained.

Table 8
R2 Calculation Output
Construct R Square R Square Adjusted
Impulsive Buying 0.393 0.384
Price 0.145 0.138
Promotion 0.021 0.014

Source: obtained from primary data (2021)

R-Squared (R2) value is used to measure how much influence a specific independent latent variable has on the latent dependent variable. According to (Hair et al., 2014) if the R2 value> 0.75 is said to be substantial if the R2 value is 0.5-0.75, it is moderate; if the R2 value is <, 0.5 it is said to be weak. The R2 result for the impulsive buying variable is 0.393, the R2 result for the price variable is 0.145, R2 result for promotion is 0.021. This indicates that the model is categorized as weak. Table 8 shows that the R2 value of this study is weak.

Significance Test

The S.E.M. model's significance test with P.L.S. aims to analyze exogent variables' effect on endogenous variables. Hypothesis testing with the PLS-SEM method is carried out by carrying out the bootstrapping process with the help of the smart PLS 3.0 computer program so that the relationship between the influence of exogenous variables on endogenous variables is obtained as follows:

Table 9
Results Of The Bootstrapping Research Data Calculation
Hypothesis P values
New Normal Eraà Price 0
New Normal Era Price àPromotion 0.113
Price àImpulsive Buying 0.001
Promotion à Impulsive Buying 0

Source: obtained from primary data (2021)

Table 10
Spesific Indirect Effect
Construct P values
New Normal Era à Impulsive Buying 0.003

Source: obtained from primary data (2021)

Before testing the hypothesis, it is known that the t-table value for the confidence level is 95%. Hypothesis testing of each latent variable relationship is shown as follows:

H1	The implementation of the new normal era has a positive and significant effect on the price of a five-star hotel room in Jakarta H2	The implementation of the new normal era does not have a significant effect on the promotion of five-star hotel rooms in Jakarta. H3	Price has a positive and significant effect on impulsive buying. H4	Promotion has a positive and significant effect on impulsive buying H5	There is a positive and significant indirect effect of the application of the new normal era on impulsive buying with p values of 0.003 

 

Table 11
Q Squared Predict(Q2)
Construct Q Square Predict
Impulsive Buying -0.047
Price 0.116
Promotion 0.002

According to Hair et al., (2019) Q² Predict >0–0.25: small predictive, 0.2 –0.50: medium predictive, 0.50: large predictive. The research model has a small predictive value because it has a Q2 predict value below 0.50. According to Hair, et al., (2019), significance is T statistic>T Table's 1.645.

Table 12
HYPOTHESIS TEST
Hypothesis Effect between construct Standardized Coefficient T Statistics Result
H1 New Normal Era à Price 0.082 4.654 Supported
H2 New Normal Era à Promotion 0.092 1.585 Not Supported
H3 Priceà Impulsive Buying 0.093 3.357 Supported
H4 PromotionàImpulsive Buying 0.087 5.023 Supported

Source: obtained from primary data (2021)

The T statistic> T Table's significance is 1,645. Research shows that Hypothesis 2 is not supported new normal era has no significant effect on promotion where T statistics <T Table's and other hypotheses are supported.

Table 13
SPECIFIC INDIRECT EFFECT
Hypothesis Standardized Coefficient T Statistics Result
New Normal Era à Impulsive Buying 0.063 2.929 Supported

Source: obtained from primary data (2021)

There is an indirect effect of the application of the new normal era on impulsive buying with a statistical T> T table.

Discussion

The research objective was to analyze the effect of the application of the new normal era on price and promotion and to analyze the impact of price and promotion on impulsive purchases, to analyze the indirect effect of the application of the new normal era on impulsive purchases, which resulted in one hypothesis that was not proven and the other hypothesis was proven, namely the application of the new normal era is proven to have a positive and significant effect on the room prices of five-star hotels in Jakarta, the application of the new normal era is not confirmed to have a significant impact on promotions, the room prices for five-star hotels in Jakarta are proven to have a positive and significant effect on impulsive buying, the promotion of five-star hotel rooms in Jakarta has confirmed it has a positive and significant impact on impulsive buying, it has proven that there is an indirect and significant effect on the application of the new normal era on impulsive buying. The R2 result for the impulsive buying variable is 0.393; the R2 result for the price variable is 0.145; R2 result for promotion is 0.021. This indicates that the model is categorized as weak. The R2 value of this study is weak, which cannot predict and explain the dependent variable in the context of purchasing a five-star hotel room in Jakarta. The results of the survey prove that price and promotion variables affect impulsive consumer buying. So it can be concluded that the price and promotion is a mediating variable. This study has built a research framework on customer psychology from an impulsive buying perspective based on this study's results and the perceived risk theory. This study also explains how perceived risk increases impulsive purchases during the COVID-19 pandemic. This study also discusses specific implications for hotel managers. Prices and promotions carried out by sellers aim to increase their income. In conducting promotions, usually, sales are much cheaper than the original price of the item. It is this price decline that causes impulsive consumer buying. Another case that shows the link between promotional prices and impulsive consumer purchases is when the COVID-19 case was heard in Indonesia; in this case, the seller took a strategy to increase the price of masks, one of the health protocols. High prices make consumers make impulsive purchases because they feel they need and are afraid if the goods required are out. Another phenomenon is when the government implements social distancing. Some consumers flock to make purchases of staples impulsively. This is also used by many producers, some of which use it by giving promotions or raising prices to lower selling prices. Based on this phenomenon, this study's results indicate that price and promotion affect impulsive consumer purchases are proven to be true.

Conclusion

Based on the findings of the researchers, it can be concluded that there is one hypothesis that is not proven. The other hypothesis is proven, namely the implementation of the new normal era is proven to have a positive and significant effect on room prices for five-star hotels in Jakarta, the implementation of the new normal era is not proven to have a significant effect on promotions five-star hotel room prices in Jakarta is proven to have a positive and significant effect on impulsive buying, the promotion of five-star hotel rooms in Jakarta is proven to have a positive and significant effect on impulsive buying, it is proven that there is an indirect and significant effect on the application of the new normal era on impulsive buying. Impulsive buying is a complex behaviour. This research suggests that hotels need to promote at attractive prices and do marketing to convince consumers who will stay at the hotel. And in the future, hotels do not need to be afraid during the pandemic because consumer behaviour has not changed, consumers still want to stay in hotels with the assurance that the hotel is safe and carry out health protocols, so the hotel in the future must carry out attractive promotions related to consumer safety. Although this study has provided empirical data that can explain practical and theoretical implications, some limitations need to be further investigated. The sample for this study is limited to respondents who have stayed at five-star hotels in Jakarta. Impulsive buying antecedents can be carried out with further research by adding other essential variables to increase the research model's explanatory power in taking the sample using google form so that the analysis is not less generalized.

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