Predicting the Mediation Impact of Brand Image on the Correlational Relationship between Price Perception, Product Quality, Promotion and Purchasing Decision

Abstract

The on going COVID-19 pandemic in Indonesia has changed consumer behavior in shopping, such as prioritizing convenience, prioritizing products that are needed most, and shopping online. Social restrictions imposed by the goverment also have an impact on how consumers perceive or evaluate the brand of the product they will buy, in other words, consumers will purchase a brand that is perceived as good. This study aims to analyze brand image as a mediator of price perception, product quality and promotion towards customer purchasing decisions on frozen food products at Riza Food outlets. This study uses a sample of 150 respondents who are consumers of frozen food products where the respondents are the object of research. This study uses Structural Equation Modeling - Partial Least Square (SEM-PLS) hypothesis testing tool to answer the research problems. The results of this study indicate that brand image cannot be predicted as a mediator of product quality with purchasing decisions because the ρ-value is 0,125 and the T-statistic value is 1,535. This means that brand image is not a driver or mediator for consumers to buy products when it is associated with product quality. However, brand image can be predicted as a mediator between price perceptions and purchasing decisions, with ρ-value 0,026, and can also be predicted as a mediator between promotions and purchasing decisions, with ρ-value 0,016. Therefore, the brand image of frozen food products sold at Riza Food outlet is capable of encouraging consumers to make purchases through price perception and promotion. This means that the perception of price and promotion is the most vital role in the minds of consumers, other than how the product can provide benefits to consumers. A product has been trusted by the consumers and consumers will be consequently satisfied when purchasing or having the certain product.