Effect of Brand Image, Price, and Promotion on Consumer Decisions to Use Grabcar Online Taxi in Medan and its Surroundings
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International Journal of Research and Review
Vol.8; Issue: 1; January 2021
Website: www.ijrrjournal.com
Research Paper E-ISSN: 2349-9788; P-ISSN: 2454-2237
Effect of Brand Image, Price, and Promotion on
Consumer Decisions to Use Grabcar Online Taxi in
Medan and its Surroundings
Abdul Murad Tanjung1, Endang Sulistya Rini2,
Beby Karina Fawzeea Sembiring2
1
Postgraduate Students Department of Management, Faculty of Economics and Business at Universitas
Sumatera Utara, Indonesia
2
Postgraduate Lecturer Department of Management, Faculty of Economics and Business at Universitas
Sumatera Utara, Indonesia
Corresponding Author: Abdul Murad Tanjung
ABSTRACT customers with service improvements, easy
ordering, fleet convenience, punctuality and
Grab online taxi (previously known as so on. In Indonesia, there are also many
GrabTaxi) is an online application-based owners of private vehicles that perform
transportation tool that is now present in Medan functions as public transportation, namely
City. The type of service is in the form of two-
transporting people/goods and charging
wheeled to four-wheeled vehicles such as
Grabcar. There are factors that can effect agreed upon fees. This type of
consumers to use Grabcar, one of which is transportation is known as "ojek".
improving brand image, price and promotion. Along with the development of
This study aims to determine and analyze the technology, there are currently applications
effect of brand image, price, and promotion on that introduce ojek ordering services using
consumer decisions to use Grabcar online taxi in technology and using service standards.
Medan and its surroundings. The population of Previously ojegs used an area-based base
this study is the people of Medan and its system at the corners and mouths of the
surroundings, who have used Grabcar online alleyways. Ojek riders from other areas
taxi, with a total sample of 279 respondents who cannot “hang around” in an area without
were taken using the accidental sampling
permission from ojek riders in that area.
method. The data was collected by distributing
questionnaires to respondents. The analysis Even to use the ojek service, service users
technique used is multiple linear analysis. The must pay cash and often bargain. Currently,
results showed that brand image, price, and there are many online motorcycle taxi
promotion have a positive and significant effect service providers known as Go-Jek, Uber,
on on consumer decisions to use Grabcar online Blu-Jek, Maxim, Indriver, Grab, Ojek
taxi in Medan and its surroundings. Syar'i, and Oke Jack. All provide almost the
same service, deliver people at different
Keywords: Brand Image, Price, Promotion, costs, but with the same ordering system,
Consumer Decisions namely ordering via mobile phone
applications and websites.
INTRODUCTION One of the transportation service
In the current era, the service sector companies that is developing in the city of
is one that has a vital role in supporting Medan is PT Grab Indonesia. Grab
daily activities is the transportation service (previously known as GrabTaxi) is a
sector. Therefore, transportation service company from Malaysia that serves
entrepreneurs are competing to hook their transportation provider software and is
International Journal of Research and Review (ijrrjournal.com) 496
Vol.8; Issue: 1; January 2021Abdul Murad Tanjung et.al. Effect of brand image, price, and promotion on consumer decisions to use grabcar
online taxi in Medan and its surroundings.
available in six countries in Southeast Asia, of 28.2%, 2018 to 48.0% but experiencing a
namely Malaysia, Singapore, Thailand, small decline in 2019 of 43.1%. TBI or Top
Vietnam, Indonesia and the Philippines. Brand Index is an achievement obtained
Grab has a vision to revolutionize the from the results of consumer selection. The
testimony industry in Southeast Asia, so that decline in Top Brand IndexGrab was caused
it can provide peace and comfort for vehicle by PT Gojek rebranding by changing logos
users throughout Southeast Asia. From the and adding drivers so that consumers
source JawaPos.com in 2019, the number of remember Gojek's services more.
Grab users has reached 144 million people. From the tariff data, GrabCar is
According to Lupiyoadi (2013), charged for a minimum rate of Rp17,000.00
service marketing is any action offered by with a rate of Rp3,000.00/km next, while
one party to another party which in principle the minimum tariff for Gocar is
is intangible and does not cause any transfer Rp15,000.00 with the next Rp2,500.00 per
of ownership. Meanwhile, according to km. Thus the GrabCar fare becomes more
Simamora (2007), service marketing is expensive than the GoCar fare. These rates
marketing that is intangible and immaterial can change and change according to certain
and is carried out when consumers are conditions such as holiday celebrations, late
dealing with producers. night rates and rates in rainy weather
Tjiptono (2015:17), services are all conditions, Grabcar rates are more
activities, benefits or satisfaction offered for expensive than Gocar fares, so many
sale. consumers choose Gocar as their online taxi
The purchasing decision is the service.
attitude of the decision made by the buyer Promotion is a flow of information
after considering the type of product, brand, or a one-way adjustment that is made to
quantity, time, producer, salesperson, and direct a person or organization to actions
payment method to fulfill their needs and that create exchanges in marketing
wants. According to Kotler and Armstrong according to Swastha and Irawan
(2012:157), "Consumer buyer behavior (2011:237), suggesting consumer interest in
refers to the buying behavior of final using online transportation services starts
purchasing behavior to individuals and from obtaining information about service
households that buy goods and services for quality, such information can be obtained
personal consumption". from various promotional media. Grab uses
Grab online taxi (previously known promotions through internet networks such
as GrabTaxi) is an online application-based as advertisements on YouTube, the web,
transportation tool that is now present in pamphlets, and social media such as
Medan City. The type of service is in the Facebook, Instagram and Gmail, which may
form of two-wheeled to four-wheeled only be known to consumers who use it but
vehicles such as Grabcar. not those who have not.
The consumer's decision to use Taxi Grab is still in second place, besides
Online GrabCar is influenced by the brand that there are several research gaps such as
image. Positive perception and consumer research conducted by Ekatadeus (2017)
confidence in a brand will create a brand. which states that Brand Image, Promotion
Kotler and Keller (2012:11) define brand and Price together have a positive and
image as ˝The perceptions and beliefs held significant effect on the decisions of users
by consumers, as reflected in the of GrabCar transportation services.
associations held in consumer memory. Research conducted by Sitanggang (2015)
Judging from the data, the brand PT. states that price has a positive and
Grab Indonesia has experienced an increase significant effect on the decision to use
following PT Gojek Indonesia, which was grab.
first in Indonesia. With a percentage in 2017
International Journal of Research and Review (ijrrjournal.com) 497
Vol.8; Issue: 1; January 2021Abdul Murad Tanjung et.al. Effect of brand image, price, and promotion on consumer decisions to use grabcar
online taxi in Medan and its surroundings.
There are factors that can effect Anthony Tan's head to create a new
consumers to use Grabcar, one of which is company that had a taxi booking system,
improving brand image, price and named My Taxi.
promotion. In 2012, Anthony Tan changed the
This study aims to determine and name My Taxi to Grab Taxi. Then in order
analyze the effect of brand image, price, and to maintain its existence, Grab is steadfast in
promotion on consumer decisions to use rebranding and changing its logo for a
Grabcar online taxi in Medan and its simple reason, namely representing all of its
surroundings. service features. The service that was
originally known as Grabtaxi changed to
RESEARCH METHODS only using the word "Grab". The name
The nature of this research is change also represents the variety of
explanatory research. This type of research services provided to users. Making Grab a
is a quantitative descriptive study. success is not a short time, but it requires a
Population is a generalization area very long and difficult process. That's what
consisting of objects or subjects which has Anthony Tan felt, who plunged himself into
certain qualities and characteristics raising Grab from scratch.
determined by the researcher to be studied In Indonesia, Grab was present in
and then drawn conclusions (Sugiyono, mid-2014. Grab has made its own history in
2010:80). The population of this study is the the world of technology-based
people of Medan and its surroundings, who transportation. Born with the name
have used Grabcar online taxi, with a total Grabtaxi, this service has received enough
sample of 279 respondents who were taken appreciation so that it is solid in building its
using the accidental sampling method. business. In less than a year, various
The data was collected by services that rely on applications are formed
distributing questionnaires to respondents. with a variety of features. Starting from
The analysis technique used is multiple passenger transportation services, delivery
linear analysis. of goods, to buying food delivery, has been
successfully developed. By adopting
RESULT economic sharing, Grab is growing in
Overview of PT. Grab Indonesia Indonesia thanks to the help of partners. In
Grab is a transportation startup principle, Grab will continue to develop
company that is quite popular in Southeast hand in hand with its driver partners. Grab
Asia, even in Indonesia it is very familiar is available for the Android and iOS
and this company is getting bigger day by operating systems in Indonesia after going
day. Initially Grab focused only on online through various screening processes, where
taxi services or commonly known as My each driver and vehicle will be checked
Taksi, but considering customer demands during registration and must maintain a star
and competition, Grab then expanded its rating above the minimum standard that has
wings by starting an online motorcycle taxi. been set and training and implementation of
From the big name Grab, there is a figure the Code of Conduct for Partners to ensure
behind Grab's success, this is Anthony Tan, service best.
the CEO and founder of Grab who comes Grab Car activities are based on
from Malaysia. three main values; Speed, innovation and
Initially, the idea of creating a Grab social impact. Grab Car drivers say that
application occurred when one of Anthony their income has increased since joining as
Tan's friends visited Malaysia and had partners in the company, they also get health
difficulty finding and ordering a taxi in and accident insurance and get access most
Malaysia, this complaint was conveyed to customers through the Grab application.
Anthony Tan. This then sparked the idea in
International Journal of Research and Review (ijrrjournal.com) 498
Vol.8; Issue: 1; January 2021Abdul Murad Tanjung et.al. Effect of brand image, price, and promotion on consumer decisions to use grabcar
online taxi in Medan and its surroundings.
Results of Multiple Linear Regression Grabcar online taxi in Medan and its
Analysis surroundings, the hypothesis uses multiple
Linear regression analysis is used to linear regression analysis and to obtain data
analyze the effect of brand image, price and results, the authors use the SPSS 23
promotion on consumer decisions to use program in Table 1 below:
Table 1. Results of Multiple Linear Regression Analysis
Model Unstandardized Coefficients Standardized Coefficients t Sig.
B Std. Error Beta
1 (Constant) 3.189 .711 4.484 .000
Brand Image .075 .034 .096 2.241 .026
Price .398 .047 .414 8.495 .000
Promotion .384 .049 .386 7.871 .000
a. Dependent Variable Y
The results showed that brand Promotion (X3) is increased it will have an
image, price, and promotion have a positive effect on increasing consumer decisions (Y).
and significant effect on consumer decisions
to use Grabcar online taxi in Medan and its CONCLUSION AND SUGGESTION
surroundings. Conclusion
Brand image (X1) has a positive The results showed that brand
effect on consumer decisions (Y) as image, price, and promotion have a positive
indicated by the regression coefficient of and significant effect on consumer decisions
0.075 with a positive sign (+) which to use Grabcar online taxi in Medan and its
indicates a unidirectional relationship. And surroundings.
brand image (X1) has a significant effect on
consumer decisions (Y) which is indicated Suggestion
by a significant level of 0.026 which is After analyzing and producing some
smaller than alpha 0.05 (pAbdul Murad Tanjung et.al. Effect of brand image, price, and promotion on consumer decisions to use grabcar
online taxi in Medan and its surroundings.
and in accordance with the benefits that Universitas Sumatera Utara Medan.
consumers expect. So that consumers Repositori Institusi Universitas Sumatera
feel the benefits of the costs that have Utara.
been incurred, as well as the additional 2. Kotler, Philip & Amstrong Gary. (2012).
accident insurance costs that have been Prinsip-Prinsip Pemasaran. Jakarta:
Erlangga.
charged to consumers should be re- 3. Kotler, Philip, & Kevin Lane Keller. (2012).
evaluated because this adds to the Manajemen Pemasaran Jasa. Jakarta:
burden on service users while the same Erlangga.
fee is not imposed by other online taxi 4. Lupiyoadi, Rambat. (2013). Manajemen
companies. Pemasaran Jasa; Berbasis Kompetensi.
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Customer Satisfastion, Strategi Kompetitif,
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Sembiring BKF. Effect of brand image, price,
REFERENCES and promotion on consumer decisions to use
1. Ekatadeus, Armanda. (2017). Pengaruh grabcar online taxi in Medan and its
Citra Merek, Promosi, dan Harga Terhadap surroundings. International Journal of Research
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Mahasiswa Fakultas Ekonomi dan Bisnis
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