EFFECT OF PERCEIVED VALUE, PRICE AND PRODUCT QUALITY ON PURCHASE DECISIONS (CASE STUDY ON UNIQLO PRODUCT OF BANDUNG CITY)
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Turkish Journal of Physiotherapy and Rehabilitation; 32(3)
ISSN 2651-4451 | e-ISSN 2651-446X
EFFECT OF PERCEIVED VALUE, PRICE AND PRODUCT QUALITY ON
PURCHASE DECISIONS (CASE STUDY ON UNIQLO PRODUCT OF
BANDUNG CITY)
Nanda Aulia Abdillah1, Dinda Juwita2, Eva Andriani3, Fatimah Azzahra4, SA. Pratminingsih5
Widyatama University, Bandung, Indonesia
4
Corresponding Email: Sri.astuti@widyatama.ac.id
ABSTRACT
The study aims to find out about the perceived effects of value, price and quality of products on purchase
decisions at Uniqlo Kota Bandung. The study aims to find out about the perceived effects of value, price and
quality of products on purchase decisions at Uniqlo Kota Bandung. The technique used in the study was
multiplied linear analysis with a sample of as many as 100 respondents. The research results were obtained a
score of 68.5%. This score shows that there is a correlation between perceived value, price and product
quality for purchase decisions at Uniqlo in Bandung City. The study emphasized the importance of providing
perceived value. To improve the company's performance especially in current situations that are evolving
into emerging competitors. Uniqlo should be increasingly aggressive in performing its marketing activities,
as well as keeping consumers loyal to the products offered.
Keywords: Perceived Value, Price, Product Quality, Purchase Decisions
I. INTRODUCTION
The development of the world's fashion world today is already very wide in Indonesia. Many societies among
women as well as men care deeply about fashion. Then not a few companies from the fashion industry focused
and raced to produce products that many societies could demand by adjusting to existing trends. Based on data
from CNBC Indonesia (2019), the development of the fashion industry can contribute about 18.01% or Rp.116
trillion. The Creative Economic Agency (CEA) also continues to make efforts to corroborate the ecosystem and
encourage growth in this subsector. Fashion is not only a major need, but it is already an artistic need so it can
drive industrial growth faster. According to data in 2017, the fashion industry in Indonesia has contributed to the
National Gross Domestic Income of 3.76%, with export value reaching $13.29 Miliyar Dollar. This fashion
subsector in the creative economy also became the largest contributor in the previous year, 2016 at 54.54%
The competition of the fashion industry in Indonesia is strict, as the fashion business is not only composed of
local industries but many brands from overseas competing. One of the existing brands is Uniqlo. One of the
companies that moves in fashion is PT. Quick Retail Indonesia. The company has a brand called Uniqlo, although
Uniqlo has been well known since the past, it is called new to the world of Indonesian fashion industry which in
2013 (Uniqlo, 2021). To continue to calm the competition Uniqlo had to pay attention to consumer behavior in
buying fashion. Many factors influence mode purchase decisions among others perceived value, price and quality
of the product.
Perceived value is a thorough evaluation of the usefulness of the product underlain by consumer perception of a
number of benefits received with sacrifices made. The value perceived by the customer (perceived value) also has
an influence on the purchase decision. This is as stated by Pratminingsih and Astuty (2017) whose perceived
value significantly exerts an influence on the purchase decision.
In addition to perceived value, prices also affect purchase decisions. According to Kotler (2017), Price is one of
the consumer factors that can determine the purchase decision. Albari and Safitri (2018) research mentions that
prices can exert an influence on consumer purchase decisions. Therefore, organizations must have a strategy in
setting prices to maximize sales volume (Sudaryanto & Subagio, 2019).
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ISSN 2651-4451 | e-ISSN 2651-446X
Based on the phenomenon, the study adopted research on the effects of perceived value, price and quality of
products on purchase decisions. What distinguishes this study with () is, research () is conducted in the hospitality
sector whereas in this study it is conducted in the fasion sector in Bandung that is Uniqlo. As for what the
problem formulations in the study were; (1) Does perceived value have an effect on Uniqlo product purchase
decisions? (2) Does prices have an effect on Uniqlo's product purchase decision? (3) Does the quality of the
product have an effect on Uniqlo product purchase decisions? (4) It is perceived value, price as well as quality of
products that have an effect on Uniqlo product purchase decisions?
II. THEORETICAL REVIEW AND HYPOTHESIS DEVELOPMENT
Perceived Value
Marketing functions within an organization must work to understand market needs, desires, and market demand
(Kotler, 2017). This need and desire will be a demand when supported by the ability to make purchases. In order
for the purchase of prdouk to provide satisfaction, the offered product must be able to provide valuable benefits
to customers. In making purchases, consumers assess whether the benefits of the purchased product are already in
accordance with the sacrifices that will be made in acquiring a particular product or not. Companies that wish to
maintain good and strong relations with consumers as well as having a competitive advantage must be able to
deliver high and unique value on the products offeredya (Jundi, 2016). According to De Medeiros et al. (2016),
perceived value is a thorough evaluation of the usefulness of the product underlain by consumer perception of a
number of benefits received compared to sacrifices made. Pratmaningsih (2017) mentions that perceived value is
the result or benefit received by the customer in regard to the total cost (including the price paid plus other costs
related to purchase). In other words, Li and Yuan (2020) state that value is the difference between benefits
received at expenses incurred. Research evidence of De Medeiros et al. (2016) and Pratminingsih (2017)
mentions that perceived value has an influence on purchase decisions. Hidayat (2009) said there were 7 customer
value indicators namely: 1. Product value, that is, the benefits that can be obtained if the customer uses the
product or service. 2. Service value, that is the benefits that customers get after service. 3. Personnel value, is a
benefit that can be obtained at the time of interacting with employees. 4. Monetary value, that is the sacrifices
that customers spend on the products or services it obtains. 5. Energy of costs that is costs customers spend on
energy lost from service providers. 6. Cost of time that is the sacrifice that customers spend for the time issued by
the provider of products or services. 7. Cost of psych that is sacrifices incurred by customers for the
psychological pressure experienced by the company.
Price
Price are marketing mixes whose nature is flexible where at any time can change based on time and place.
According to Albari and Safitri (2018), the price is the value of the product stated with money. Kotler (2017)
mentions that among the goals of a price that are for survival, maximizing profit, and maximizing market share.
Product prices are divided into three dimensions namely: fair price, fixed price and relative price. Fair prices refer
to price adjustments that offer a combination of quality and service that fits a reasonable price (Harahap, 2018). A
fixed price is a set price for all buyers. And relative prices are set according to the quality and service provided.
According to Ekowati and Finthariasari (2020), there are four indicators that characterize prices, that is price
affordability, price suitability with product quality, competitiveness, and the suitability of prices to benefits.
Prices will be of considerable consideration for consumers in deciding on purchases (Albari & Safitri, 2018).
Consumers will compare the price of their preferred products then evaluate the suitability of prices to the value of
the product or service as well as the amount of money to be spent. Akbar (2020) mentioned that price perceptions
strongly affect consumers' decision to buy products. This perception explains information about prodyk and
provides a profound meaning for consumers.
Product Quality
Product quality is one aspect noticed by customers when they make purchase decisions. Restiani and Nurdiyana
(2019) mention that the quality of the product is the ability of an item to deliver a suitable outcome or
performance or even exceed that of what the consumer expects. Kotler and Amstrong (2017) state that product
quality is the product's ability to perform its functions which include preservation, reliability, precision, easement,
operation and repair and other attributes. A product whose chips have been able to perform their function can be
said to be a good quality product. According to Kotler (2017), most products are provided at one of four quality
levels: low quality, medium quality, good quality, and the best quality. Some of the above attributes can be
objectively measured. But in terms of marketing, quality must be measured from the buyer's perception of the
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ISSN 2651-4451 | e-ISSN 2651-446X
quality of the product. Kotler (2017) said that product quality is a potential strategic weapon to defeat
competitors. So only the company with the best product quality will grow quickly, and in the long run the
company will be more successful than any other company.
Purchase Decision
Purchasing decisions are an integrated process that combines knowledge attitudes to evaluate two or more
alternatives and choose one of them (Albari & Safitri, 2018). Understanding the decision-making process made
by consumers is very important. Companies that know what consumers buy, where they buy the products they
want, how to buy them, how much they buy them, and why they buy them, will be able to develop good
marketing strategies and win the competition (Lestari et al., 2019). In the purchase decision, Consumers go
through several stages before determining what to buy and consumers are certainly faced with two alternatives so
that in the end they will choose one of these alternatives. Pardede and Haryadi (2017) state that there are three
factors that can influence consumer purchasing decisions, namely internal (perceptions, motivation, knowledge,
and attitudes), external (culture, social class, and family), and situational (needs, and desire). In this case,
purchasing decisions are often based on consumer behavior which is the study of the processes involved when
individuals or groups choose, buy, and use a product or service. A purchase occurs when consumers have a need
or as a means of a problem that must be met. In practice, when consumers want to make a purchase, they must
first collect and process information, evaluate it and choose the best option to solve problems or make purchase
choices (Pratmaningsi, 2017). According to Kotler (2017), the consumer purchasing decision model refers to the
various orientations and perspectives that consumers use to approach the market and why they behave.
Perceived Value
Price Purchase
Decision
Product quality
Albari and Safitri (2018); Pratmaningsih, (2017); Pardede and Haryadi (2017)
Hypothesis
H1. Perceived value affects purchasing decisions
H2. Price affects the purchase decision
H3. Product quality affects purchasing decisions
III. RESEARCH METHOD
The method used in this research is descriptive and verification research methods with a quantitative approach. In
this study, 100 respondents were used as a sample of students who used Uniqlo products. The sampling method
uses non-probability sampling techniques with incidental sampling. According to Sekaran (2016), incidental
sampling is a sampling technique based on chance at that time which is sampled if there is a match as the sample.
The data source and data method used in this research is a survey by distributing questionnaires. The technique
used to measure the variables in this study is a Likert scale which has five alternative answers ranging from
strongly disagree to 5. strongly agree.
IV. RESULTS AND DISCUSSION
Respondent Profile
Researchers conducted a survey of 100 students as respondents. Table 1 describes the profile of the respondents
in this study.
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ISSN 2651-4451 | e-ISSN 2651-446X
Table 1. Profile of Respondents
Respondent Profile Precentage
Gender Male 93%
Female 7%
Age < 17 y.o 2%
18 - 20 y.o 20%
21 – 23 y.o 68%
> 26 y.o 10%
Based on pocket money in a month Rp. 12 jt 1%
Based on the Lecture Force 2017/2018 70%
2018/2019 11%
2019/2020 12%
2020/2021 7%
Frequency of Buying Clothes / Year 1 Time 23%
2-3 Time 33%
4-5 Time 16%
> 5 Time 28%
Source: Processed Data (2021)
Data from the responses of 100 respondents showed that the results obtained were 93% male, and female gender
by 7%. These results indicate that male respondents use more uniqlo products when compared to women. Based
on age, 21-23 years more than other ages. This shows that this age range purchases clothes more frequently.
Based on pocket money, the average respondent is atTurkish Journal of Physiotherapy and Rehabilitation; 32(3)
ISSN 2651-4451 | e-ISSN 2651-446X
Summary mode
Tabel 6. Multiple Regression
Model Summaryb
Model R R Square Adjusted R Square Std. Error of the Estimate
1 ,685a ,469 ,452 1,990
a. Predictors: (Constant), Quality Product, Price, Perceived Value
b. Dependent Variable: Purchase Decisions
Source: Processed Data (2021)
Based on the table above there are correlations between X1, X2, and X3 against Y or variables perceivedd value,
price and quality of product terhadap purchase decisions 685. There is also a direct influence of variables X1, X2,
and X3 against Y that can be seen there is a determination coefficient value of 0.685 or 68.5% while 31.5% is
affected by other factors beyond the variables studied.
Coefficientsa
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta T Sig.
1 (Constant) 5,449 1,866 2,920 ,004
Perceived Value -,045 ,118 -,046 -,385 ,701
Price ,495 ,130 ,441 3,820 ,000
Quality Product ,332 ,090 ,364 3,695 ,000
a. Dependent Variable: Purchase Decisions
Based on the table above it can be known that the multiple regression equation results in the following values:
Y= 5.449 – 0,045 + 0,495 + 0.0332
By the partial regression hypothesis as follows:
1 The value of t counts -0,385 < t table 1,984 or significance of 0,701 > 0,05. Trus it can conclude that
there is no influence between X1 variables (Perceived Vallue) against Y (Purchase Decisoins).
2 The value of t counts 3,820 > t table 1,984 or significance of 0,000 < 0,05. It can thus be concluded that
there is a significant positive influence between X2 variables (Pricce) against Y (Purchase Decisions).
3 The value of t counts 3,695 > t table 1,984 or significance 0,000 < 0,05. It can thus be concluded that
there is a significant positive influence between X3 variables (Quality Product) againts Y (Purchase
Decisions).
F test
Table 7. F Test
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression 335,268 3 111,756 28,224 ,000b
Residual 380,122 96 3,960
Total 715,390 99
a. Dependent Variable: Purchase Decisions
b. Predictors: (Constant), Quality Product, Price, Perceived Value
Source: Processed Data (2021)
Based on table above obtained F-count value of magnitude 28,224 and F-table 3,090, be due F-count > F-table
and sign price 0,000 < 0,05 then H0 rejected and H1 is accepted, thus a hypothesis stating that variables Perceived
Value (X1), Price (X2) and Quality Product (X3) effect simultaneously on Purchase Deisions (Y) statistically
accepted (significant).
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ISSN 2651-4451 | e-ISSN 2651-446X
V. DISCUSSION
The first purpose of the study was to see how the effect perceived value had on the purchase decision. Perception
of value according to Zeithaml (1988) can be defined as an overall consumer evaluation of a product or service
based on the perception of what is received and what is given. The results of this study show that perceived value
has no significant effect on Uniqlo's fashion purchasing decisions. This research is supported by research
conducted by Prasetyo and Susesno (2015) which proves that perceived value has no effect on smart phone
purchasing decisions.
In this study, the price, and quality of the product influenced the purchase decision. In buying a product the price
plays an important role as explained by various researches (Pratminingsih, 2017; Akbar, 2020; Albari & Safitri,
2018). This study supports the results of the study. Consumers in this case students are still considering the price
and quality of products in buying Uniqlo.
VI. CONCLUSION
The results in the study concluded that there is a positive influence between variable price, product quality to
purchasing decisions on Uniqlo products in Bandung. In addition, this study found that perceived value does not
affect consumer purchasing decisions on Uniqlo products. To improve the company's performance, especially in
the current situation that is increasingly emerging competitors, Uniqlo must be better in carrying out its
marketing mix strategy, as well as maintaining quality so that consumers are loyal to the products offered. For
further research, there are still many variables that can influence purchasing decisions that are not discussed in
this study, therefore other peeliti can discuss other variables that affect fashion purchasing decisions.
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