THE ROLE OF BRAND
IMAGE, PROMOTION, PRICE THERE IS TRUST, AND PURCHASING DECISIONS TOWARDS THE
LOYALTY OF PRIVATE LABEL PRODUCTS OF THE TRADITIONAL RETAIL INDUSTRY IN NUNUKAN
NORTH KALIMANTAN
Mardiana1, Nuryakin2 �
Universitas
Muhammadiyah Yogyakarta1,2
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Received:
06-07-2022�������������������� ��������������� Accepted: 10-07-2022���������������������� ��������������� Published: 15-07-2022������
ABSTRACT
The
purpose of this research is to examine, the effect of brand image, promotion,
and price on trust, and purchasing decisions, the effect of trust on purchasing
decisions, and customer loyalty, and the effect of purchasing decisions on
loyalty. In this study, private-label brands in the retail industry in
Yogyakarta are objects and the people of Yogyakarta are subjects with the
minimum criteria for purchasing private labels three times. The sample is 272
respondents. The analytical tool used is SEM (Structural Equation Modeling)
which is operated through the AMOS program. Sampling was carried out using a
multistage random sampling technique. Furthermore, data collection is carried
out by distributing questionnaires through a google form.� The SEM method used in this study is the
estimation of maximum probability and is used as a one-step approach in
modeling the SEM approach. Descriptive statistical analysis and Cronbach�s
alpha were performed with SPSS 21. SEM analysis was performed using the AMOS
program. These results indicate that there is a positive and significant
influence between Brand Image, Promotion, and Price on Trust and Purchase
decisions. Trust has a positive and significant effect on Purchase Decisions
and Loyalty, Purchase Decisions have a positive and significant effect on
customer loyalty.
Keywords: Brand
Image, Promotion, Trust, Purchase Decisions, and Consumer Loyalty.
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Corresponding Author: Mardiana
E-mail: [email protected]
INTRODUCTION
Nowadays, consumers always get satisfaction from the
products they consume. One of them is to consume the same product at a cheaper
price.� The same product at a cheaper
price is a private label from a store that has a good image in the eyes of
consumers (White, 1997).� So that some
retail industries in Indonesia try to package the products they sell with their
packaging and brands or under other names of private labels. This is done of
course with the consideration that their company already has a good image in
selling quality products and is firmly embedded in the minds of consumers
because private label products are one of the considerations in meeting the
needs of consumers.
From the company's point of view, private labels not
only increase profits and differentiation but also attract consumers and
increase market share (Yang et al., 2010).� Therefore, a
retailer that can maintain and improve its brand image can increase customer
loyalty and higher purchasing power toward the private label products offered (Yang et al., 2010).� as many as
66% of consumers in the country have rated Privat Label products as improving,
this indicates a positive perception of private label products (SWA, 2014).� According to
the Executive Director of Nielsen Indonesia, in Indonesia, the development of
private label products is currently developing, and customer loyalty to the
brand is very high. This poses a huge challenge for sellers selling Private
Label products.� Even in Indonesia,
marketing activities for Private Label products are currently not active
(SWA2014). Some of these reviews show that we need to understand the factors
that drive consumer interest in buying Private Label products.
This study develops a model used to examine several
factors that affect consumer loyalty to private label products.� Reviewing (Sulibhavi &
Shivashankar, 2017) Brand Image and Trust on Customers Loyalty: A Study
on Private Label Brands in Hubli-Dharwad Conglomerate City of Karnataka.
Furthermore, a little combination in this study by adding variables of
promotion, price, and purchase decisions to be tested for their effect on
consumer loyalty.
The study is focused.�
Reviewing private label products with the consumer product category. The
study in this study focused on Nunukan North Kalimantan on Traditional Retail
such as shops, kiosks, and stalls that are not in the market location.� Researchers chose traditional retail because
Nunukan North Kalimantan has a long distance from the First Lady. In addition,
Nunukan North Kalimantan is almost on the Indonesia-Malaysia border so people
there still rely on traditional retail.
METHOD
The sample is a
traditional North Kalimantan retail customer. Sampling was carried out using a
multistage random sampling technique. Furthermore, data collection is carried
out by distributing questionnaires through a google form. The questionnaire
consists of three parts, namely the explanation related to the product, the
characteristics of the respondent, the filling out of the questionnaire.� Data collection was carried out for seven
days so that the number of samples was 314 people, out of 314 people who filled
out the questionnaire only 323 samples could be included in the next analysis
because the answers to all questions were complete, and no data was lost.�
This study used
several data analysis techniques. Descriptive statistics are used to describe
the characteristics of the respondents. Chronbach'alpha is used to test the
reliability of measuring instruments. Structural Equation Modeling (SEM) is
used in addition to testing the validity and reliability of measurement
instruments, but also to test the relationships between hypothesized variables.
The SEM method used in this study is the estimation of maximum probability and
is used as a one-step approach in modeling the SEM approach. Descriptive
statistical analysis and Cronbach' alpha were performed with SPSS 21. SEM
analysis was performed using the AMOS program.
RESULTS AND DISCUSSION
Result
1.
Respondent Profile
The descriptive results of respondents in this study
showed that the number of male respondents (86%) was very different from that
of female respondents (186%).� Most of
them are aged 21-30 (47.8%) with jobs, most of whom are still students
/students (48.2%) and have the last level of education of SMA / SMK (51.8%) and
Bachelor of S1 (39%). For more details, please see table 1 below:
Table
1. Respondent Profile
|
Respond |
Frequency |
Percentage (%) |
|
|
Gender |
Man |
86 |
31,6% |
|
Woman |
186 |
68,4% |
|
|
Age |
17-20 |
59 |
21,7% |
|
21-30 |
130 |
47,8% |
|
|
31-40 |
67 |
24,6% |
|
|
41-50 |
16 |
5,9% |
|
|
Work |
Student |
131 |
48,2% |
|
Private Employees |
35 |
12,9% |
|
|
State Officer |
28 |
10,3% |
|
|
Self-employed |
41 |
15,1% |
|
|
Miscellaneous |
37 |
13,6% |
|
|
Recent Education |
Junior High Schools/MTs |
11 |
4% |
|
High School/Vocational School |
141 |
51,8% |
|
|
Diploma |
8 |
2,9% |
|
|
Bachelor |
106 |
39% |
|
|
Graduate |
6 |
2,2% |
|
2.
Validity and Reliability Analysis Results
Based on the results obtained, all indicators have a
standardized estimate value of > 0.6, which means that the indicator can be
said to be valid in explaining existing variables. Then it can be concluded
that overall the points are valid or the appropriate/correct instruments to
measure the auditor's competency variables.�
Likewise, the results of the reliability analysis showed that the
C.R� value in 6 research variables whose
value of each variable was greater than 0.7. Based on these results, it can be
concluded that the entire research instrument is reliable so that it can be
used in this study. Clearly, the results of the validity and reliability test
can be seen in Table 2 below:
Table 2. Validity and Reliability Test
Results
|
Variable |
Grain |
Factor Loading |
Factor Loading2 |
CR |
Information |
|
Brand Image |
CM1 |
0,808 |
0,653 |
0,9131 |
Reliable |
|
CM2 |
0,803 |
0,645 |
|||
|
CM3 |
0,819 |
0,671 |
|||
|
CM4 |
0,805 |
0,648 |
|||
|
CM5 |
0,716 |
0,513 |
|||
|
CM6 |
0,833 |
0,694 |
|||
|
Promotion |
PR1 |
0,840 |
0,706 |
0,8855 |
Reliable |
|
PR2 |
0,758 |
0,575 |
|||
|
PR3 |
0,831 |
0,691 |
|||
|
PR4 |
0,817 |
0,667 |
|||
|
Price |
HA1 |
0,789 |
0,623 |
0,8558 |
Reliable |
|
HA2 |
0,758 |
0,575 |
|||
|
HA3 |
0,742 |
0,551 |
|||
|
HA4 |
0,802 |
0,643 |
|||
|
Belief |
K1 |
0,792 |
0,627 |
0,8622 |
Reliable |
|
K2 |
0,717 |
0,514 |
|||
|
K3 |
0,810 |
0,656 |
|||
|
K4 |
0,803 |
0,645 |
|||
|
Purchasing Decision |
KP1 |
0,825 |
0,681 |
0,9355 |
Reliable |
|
KP2 |
0,849 |
0,721 |
|||
|
KP3 |
0,866 |
0,750 |
|||
|
KP4 |
0,893 |
0,797 |
|||
|
|
KP5 |
0,878 |
0,771 |
||
|
Loyalty |
LY1 |
0,740 |
0,548 |
0,8727 |
Reliable |
|
LY2 |
0,788 |
0,621 |
|||
|
LY3 |
0,810 |
0,656 |
|||
|
LY4 |
0,839 |
0,704 |
3.
Goodness of Fit

Figure 1. Full Model
Before testing the hypothesis, the researcher
assessed� the Goodness of Fit (GOF) model
using the Maximum Likelihood (ML) method�
using AMOS Software. The test results of the GOF model in this study
were quite good because the value of each fit test met the assumptions of using
SEM. These results can be seen in the following table:
Table
3. Assessing Goodness of Fit
|
Goodness of fit
index |
Cut-off value |
Research Model |
Model |
|
Chi-square |
Expected small |
414,311 |
Marginal |
|
Significant probability |
≥ 0.05 |
0,000 |
Marginal |
|
CMIN/DF |
≤ 2.0 |
1,328 |
Fit |
|
GFI |
≥ 0.90 |
0,920 |
Fit |
|
RMSEA |
≤ 0.08 |
0,035 |
Fit |
|
AGFI |
≥ 0.90 |
0,880 |
Marginal |
|
TLI |
≥ 0.90 |
0,978 |
Fit |
|
NFI |
≥ 0.90 |
0,925 |
Fit |
|
PNFI |
The Bigger, the
Better |
0,822 |
Fit |
|
PGFI |
The Bigger, the
Better |
0,744 |
Fit |
4.
Hypothesis Test
Hypothesis testing in this study is intended to answer
research questions by analyzing structural models. Structural analysis in this
study can be seen from the standardized regression weight value, which explains
the coefficient of influence between variables. In this study, there are nine
hypotheses. The test was carried out by comparing the probability value of the
significance level used in this study was 0.05. If the Critical Ratio (C.R.)
value is 1.967 or the probability value (p) < 0.05, then H1 is accepted.
Here is a picture of a structural model with a standardized factor loading
value. Table 3 presents the results of testing the hypothesis of direct
influence. As seen in the table, hypothesis 1 (H1) to Hypothesis 9 (H9) is
accepted (P<0.05). It can be concluded that the brand image has a positive
and significant effect on the trust and purchase decisions of private label
products. Likewise, Promotions that are positive and have a significant effect
on trust and purchase decisions, the price has a positive and significant
effect on trust and purchase decisions, trust has a positive and significant
influence on purchasing decisions and customer loyalty, and purchasing
decisions have a positive and significant effect on the loyalty of private
products label.
Table
4. Relationships between Variables
Discussion
The first hypothesis test (H1), from the results of the
analysis carried out by the researchers, proved that there was a positive and
significant influence. This supports the hypothesis proposed by researchers,
namely the influence of brand image on trust. These results are supported by
research by (Sulibhavi &
Shivashankar, 2017) showing that there is a relationship between brand image
and trust. Similarly, research conducted by (Alhaddad, 2015); (Puspita & Yunus,
2017) and (Faizal & Nurjanah,
2019) stated that brand image was found to have a positive
effect on trust. So it is concluded that the better the brand image in the
minds of consumers, also causes a high level of consumer confidence in the
product.
In the second hypothesis test (H2), it was found that the
results of this study supported the hypothesis proposed by the researcher,
namely the influence of brand image on purchasing decisions. This is in line
with research by (Adiwidjaja, 2017) also shows that there is a positive influence between
brand image and purchasing decisions. The question is in line with the research
of (Amron, 2018); (Putri & Sukaatmadja,
2018) and (Prasetya & Medinal,
2018) that brand image has a positive influence on purchasing
decisions. So the better the brand image in the minds of consumers also causes
a high level of purchasing decisions for the product.
The third hypothesis test (H3), in this hypothesis, also
found that there is a positive and significant influence between promotions on
trust. Supported by results research shows that there is an influence of
promotion on trust. This is in line with research reported that promotion does
have a positive influence on customer trust (Tajudin & Mulazaid,
2017); (Edyansyah, 2018).
In the fourth hypothesis test (H4), it was found that the
results of data analysis supported the fourth hypothesis, namely good promotion,
which would increase purchasing decisions. This is also supported by (Solihin, 2020) which states that there is a positive influence between
promotion and purchasing decisions. Likewise, in his research, he emphasized
that there is a positive influence between promotion and purchase decisions
(Azzahra et al., 2021).
In the fifth Hypothesis Test (H5), the results of this
hypothesis test show that price has a positive and significant influence on
consumer confidence in private label products. In line with research by (Pratama & Santoso,
2018) states that prices have a positive influence on consumer
confidence. This statement is supported by research by (Pratama & Santoso,
2018) and (Suhaily & Darmoyo,
2017) which also shows that there is a positive influence of
Price on Trust.
In the sixth Hypothesis Test (H6), it was found that the
results of this study supported the hypothesis proposed by the researcher,
namely the influence of price on purchasing decisions. This is in line with the
research of (Suhaily & Darmoyo,
2017) his research shows that there is a positive influence
between prices on purchasing decisions. The results of the analysis stated that
there is a positive influence between prices on purchasing decisions (Santri Zulaicha, 2016); (Supangkat &
Supriyatin, 2017).
The seventh Hypothesis Test (H7), found that the results
of data analysis support the seventh hypothesis, namely that trust in private
label products will increase purchasing decisions. The results of this study
supported by (Marwati & Amidi,
2019) show that there is an influence on trust in buying
decisions. This statement is in line with the research of (Istiqomah et al., 2019) that increasingly high trust will make consumers decide
to buy a product. (Amron, 2018) and (Miswanto et al., 2020) in research conducted proved that there is an influence
of trust on purchasing decisions. This proves that increasingly trusting
consumers in a food product will increase the decision to buy the product.
In the eighth Hypothesis Test (H8), the results of this
hypothesis test show that trust in private label products has a positive and
significant influence on customer loyalty to private label products. In line
with research conducted by (Sarwar et al., 2012) also states that trust also has an influence on customer
loyalty. In line with the research of (Chinomona &
Ming‐Sung Cheng, 2013); (Utami, 2015) and (Bahrudin & Zuhro,
2016) which shows that the more consumers trust a product, the
more customer loyalty will also increase.
In the ninth Hypothesis Test (H9), it was found that the
results of data analysis supported the ninth hypothesis, namely that the
decision to release private label products would increase customer turnover.
This is supported by previous research that shows that the purchase fee has an
influence on customer loyalty (Diansyah & Putera,
2017). (Sulistiani, 2017) also showed the results of research that purchasing
decisions on customer loyalty have a positive and significant influence. This
is in line with research conducted by (Rauf et al., 2019) and (Mayrora & Basri,
2020) state that purchasing decisions have a good influence on
customer loyalty. So we can conclude that the higher the level of purchasing
decisions on a food product, the higher the customer's failure.
CONCLUSION
According to the discussion above, the
conclusions obtained are the influence of brand image on trust.� The results of this study show that there is
a positive and significant influence between brand image and trust. The
influence of the brand image on the purchase decision. The results of this
study show that there is a positive and significant influence between brand
image and purchasing decisions. The effect of promotion on trust.� The results of this study show that there is
a positive and significant influence between promotion and trust. The influence
of promotion on purchasing decisions. The results of this study show that there
is a positive and significant influence between promotions and purchasing
decisions. The effect of price on confidence.�
The results of this study show that there is a positive and significant
influence between prices and confidence. The effect of price on purchasing
decisions. The results of this study show that there is a positive and significant
influence between prices on purchasing decisions. The influence of trust on
purchasing decisions. The results showed that there was a positive and
significant influence between the confusion and purchasing decisions. The
influence of trust on customer loyalty. The results of this study show a
positive and significant influence on trust in customer loyalty. The influence
of purchasing decisions on customer loyalty. The results of this study show
that there is a positive and significant influence between purchasing
satisfaction and customer loyalty.
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