The Influence of Product Quality, Price, and Income on Rice Purchasing Decisions at Pt. Komoditi Tani Indonesia

Abstract

The high level of rice consumption in Indonesia makes it the fourth largest rice consumer in the world. PT. Komoditi Tani Indonesia as a producer, distributor and retailer of rice must know the extent to which the quality of the products and prices provided are acceptable to the public so as to expand the market and increase the number of sales. This study was conducted to describe the characteristics of consumers who shop for rice at PT. Komoditi Tani Indonesia, analyzing the influence of product quality on rice purchasing decisions at PT. Komoditi Tani Indonesia, analyzing the influence of price on rice purchasing decisions at PT. Komoditi Tani Indonesia, analyzing the influence of income on rice purchasing decisions at PT. Komoditi Tani Indonesia. The number of samples in this study were 50 respondents and used accidental sampling techniques. The analysis method used is descriptive analysis and Structural Equation Modeling (SEM) based on Partial Least Square (PLS). The results of this study indicate that the characteristics of rice consumers at PT Komoditi Tani Indonesia are female, over 41 years old, working as housewives, income of Rp. 2.000.000 – Rp. 3.000.000 in a month, and have a family of 4 – 6 people. Product quality has a positive and significant effect on rice purchasing decisions at PT. Komoditi Tani Indonesia. Price has a positive and significant effect on rice purchasing decisions at PT. Komoditi Tani Indonesia. Income has a positive and significant effect on rice purchasing decision at PT. Komoditi Tani Indonesia.