THE IMPACT OF PRICE AND QUALITY PRODUCT ON CONSUMERS’ PURCHASING DECISION IN KAOS ANAK FOR KIDS’ (KAFK) CLOTHING SHOP

Abstract

In this research revealed there is a gap between price and product quality that impact of consumer purchasing decision in children's clothing. Besides caused by the high growth of clothing shop outlets, the price and quality of products can also affect the purchasing decision of consumers in buying or consuming products. That makes the sales of KaosAnakFor Kids’ (KAFK) clothing shop products decrease in 2017-2018. This research aims to know whether the price and quality of the product influences in purchasing decision of KAFK’s clothing shop consumers. The factors tested in this research are price and product quality as independent variables, while purchasing decision as the dependent variable. This research used descriptive method, with data collection techniques through observation and questionnaire distribution. The population in this research is consumers of children's fashion products with a research sample of 150 respondents. Data analysis used Path Analysis to answer the research hypotheses. The results of measurement data through a questionnaire for the independent variables studied were in the form of ordinal data. To equalize the data of the ordinal scale independent variable with the interval scale independent variable, it should transform first into an interval scale using the LISREL program. The results showed that the two independent variables, namely price and product quality, had an effect on determining the dependent variable, namely consumer purchasing decision in children's clothing shop KaosAnak for Kids.