The Effect of Product Difference and Prices on Purchase Decision Through Brand Image on Product Indihome Region Telecommunication Business Medan

Abstract

In this era of industrial revolution, it has changed many areas of human life. Currently the internet has become a necessity for many people, the benefits of the internet in general are to obtain unlimited broad information on individual, social and business or worker information that can be obtained through internet access. IndiHome is a telecommunications company authorized by PT. Indonesian Telecommunications. Officially, in 2015, Indihome was launched and became the main project of the company PT. Telkom Indonesia. Currently, Indihome has many branches, including in Medan City. The purpose of this study was to analyze the effect of product differentiation and price on purchasing decisions through brand image on Indihome products, the telecommunications business area of Medan. This type of research is associative research. The population as of December 2021 is 255,460 people. The sample size was determined using the Slovin formula so that a total of 400 people was obtained. The sampling technique in this study was non-probability sampling, namely accidental sampling. Data analysis was carried out through PLS-SEM using the SmartPLS program. The results showed that product differentiation, price and brand image each had a significant positive effect on purchasing decisions. Product differentiation and price have a significant positive effect on brand image. Indirectly product differentiation has a significant positive effect on purchasing decisions through brand image and price has a significant positive effect on purchasing decisions through brand image. Keywords: Product Differentiation, Price, Brand Image, Decision Purchase