The impact of store formats and sales promotion towards consumer’s purchase decision: Case study of Indomaret in Bandung city

Abstract

Much intention in the marketing literature has been placed on consumer behavior issues relating to drivers of purchase intention including store choice, marketing communication mix, promotional mix tools, and loyalty to brands. The consumer according to his social class, income, desires and other factors purchases groceries either in a traditional retail market or modern one. In developing countries, particularly in Indonesia, there is an expansion of modern retail stores at the expense of traditional stores which used to be the shopping destination of most customers. In a context of emerging economy country, the purpose of this study is to investigate and analyze the influence of store format and sales promotion on grocery retail store consumers. The analysis based on online survey of 230 consumers of the modern retail store “Indomaret” in Bandung city via application of Smartpls3, reveals findings according to which both store format and sales promotion have a significant influence on consumers’ purchase decision. The study shows the large number of students as Indomaret consumers with indicators such as coupons, shopper cards, products line, and customer care that strongly influence on consumers purchase decision.