THE IMPACT OF PRICE PROMOTION AND WORD OF MOUTH ON PURCHASE INTENTION ON LAZADA (CASE STUDY BANDUNG'S CONSUMERS IN 2020)

Abstract

The more technological advances are developed, the more technological innovations there are. One of the new technology is online shopping. People new behaviour is online shopping because they can easily buy goods without going out. The increasing public interest in online shopping has led to e-commerce brands in Indonesia. Lazada, as one of the e-commerce in Indonesia, needs to strengthen its marketing strategy, so people can be interested in making payments on the Lazada platform.
 This study aims to analyze whether price promotion and word of mouth can affect the purchase intention of Indonesian people, especially the city of Bandung. The population in this study were the people of Bandung who had shopped or knew about Lazada. Data collection technique with a questionnaire, while the data analysis technique used multiple linear regression analysis, classical assumptions (normality test, multicollinearity test, heteroscedasticity), statistical tests (t-test, f test and coefficient of determination).
 From the classical assumption analysis results, the normality test with Kolmogorov Smirnov was obtained significantly more than 0.05, which means that the data distribution is normal. The multicollinearity test received close VIF and Tolerance values one, so it can be concluded that the regression model does not have a problem with multicollinearity. In contrast, the heteroscedasticity test was carried out by the Glejser method declared no trouble found.
 Based on the results of multiple linear regression analysis from the t-test, the finding is that, partially, purchase intention significantly affects price promotion and word of mouth. The results of the F-test show that simultaneous price promotion and word of mouth are significant towards purchase intention where f count > f table.