Predicting the Mediation Impact of Promotion in Correlation with Price Perception, Product Quality, Brand Image, and Purchasing Decision

Abstract

This study aims to analyze promotion as the mediator of price perception, product quality, and brand image towards the decision of purchasing Minaku’s frozen food. This study uses a sample of 150 respondents who are consumers of Minaku. The researcher uses the analysis method of Structural Equation Modelling – Partial Least Square (SEM-PLS) to answer the matter in the research. The SEM calculation shows that promotion cannot be predicted as a mediator between price perception and purchase decision because the ρ-value is 0,101 and the T-statistic value is 1,644. It means price perception is not a key factor that can influence customers to buy a product, even though it is given a promotion. Especially for Minaku’s frozen food product, the power of brand image and product quality affect consumer consideration during purchasing. The price perception is not the most important thing for consumers, but rather how a product can fulfill consumers’ needs; for instance, the product has to be reliable and give satisfaction feeling in exchange for owning the product.