Abstract

This research uses a quantitative approach, using 25 samples taken from the population, namely consumers of retail companies that sell private label products, including Superindo, Indomaret, and Alfamart. The purpose of this study is to analyze and determine whether the variable customer satisfaction can mediate the effect of promotion and place advertising on positive word of mouth. Data analysis in this research used PLS (Partial Least Square) with the SmartPLS program, which consists of a measurement model, namely convergent validity, discriminant validity and composite reliability, as well as structural models namely R-Square, Q-Square, Path test coefficients to test the significance of influence, and the Sobel test to test for mediation. The results showed that consumer satisfaction was not able to mediate a positive relationship between promotion and positive word of mouth, but promotion had a significant effect on consumer satisfaction.

Highlights

  • The main business objective is to seek profit or maximize profit

  • Business competition is getting higher, business people are trying their best so that their products can occupy the hearts of customers, various strategies are used in order to attract consumers to repurchase to increase sales volume, ranging from product strategies, promotional strategies, advertising, brands, pricing, distribution, customer satisfaction and others, depending on the policies to be taken by the company

  • The Path Coefficients table, the results of the analysis show that: Influence Test The consumer satisfaction variable does not have a significant effect on positive word of mouth because the t statistical value shows 0.180057 where

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Summary

Introduction

The main business objective is to seek profit or maximize profit. Only can other goals be achieved. Business competition is getting higher, business people are trying their best so that their products can occupy the hearts of customers, various strategies are used in order to attract consumers to repurchase to increase sales volume, ranging from product strategies, promotional strategies, advertising, brands, pricing, distribution, customer satisfaction and others, depending on the policies to be taken by the company. There are many companies using private label products or store brands in attracting customers in order to increase their sales volume and satisfy consumers' hearts, because with these private label products companies can implement low price strategies, promotional strategies, advertising strategies and others. It is recommended that retailers maintain low prices on their private label products while maintaining and improving the quality of these products For this reason, the researcher takes the title of a combination of promotion and place advertising on positive word of mouth of private label products that are mediated by consumer decisions. International Journal of Research in Business & Social Science 10(2) (2021), 46-53 private label products? And to find out and analyze how the influence between the independent variable and the mediating variable and the dependent variable

Literature Review
Result and Discussion
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