Abstract
This study examines four variables, namely product quality, service quality, word of mouth, purchasing decisions. The purpose of this study was to analyze and explain the effect of product and service quality on purchasing decisions by testing word of mouth as an intervention. Research respondents are consumers of PT Hosana Inti Malang Branch. A total of 321 people became the sample of this study. The analysis technique is descriptive, classical assumption test, and linear regression to confirm a structural equation model built by the researcher. A quantitative approach was chosen to explain the influence between research variables. Collecting data using a questionnaire. The results of this study found that word of mouth can mediate the influence of product quality and service quality so that it has an impact on increasing purchasing decisions at PT Hosana Inti Branch Malang. Keywords: Product Quality, Service Quality, Word of Mouth Purchase Decision DOI: 10.7176/JMCR/85-03 Publication date: February 28 th 2022
Highlights
Economic growth in Indonesia today is influenced by technology and globalization
The indicator that best describes purchasing decisions is that respondents tend to agree about the brand of products sold by PT Hosana Inti following consumer expectations
The regression coefficient of product quality and service quality showed a significant effect on word of mouth, product quality, and service quality showed a significant effect on purchasing decisions, and the regression coefficient for word of mouth as an intervention showed a significant effect
Summary
Economic growth in Indonesia today is influenced by technology and globalization. According to Bank Indonesia data, Indonesia's economic growth in 2019 was above 5%. People's purchasing power in meeting their daily needs has increased as a result of positive economic growth. The second need is the secondary need, namely the need for additional goods. This need is a result of the increasing human civilization, for example, kitchen utensils and electronic equipment. The third need is the need for tertiary or luxury needs, which are needs that can only be satisfied if the community is in a rich society. These needs can include Primary and Secondary needs but in excess quantity or luxury quality. Examples of Tertiary needs are luxury homes, luxury clothes, and others
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