214 Matrik: Jurnal Manajemen, Strategi Bisnis dan Kewirausahaan Vol. 16, No. 2, Agustus 2022

P-ISSN: 1978-2853

E-ISSN: 2302-8890


MATRIK: JURNAL MANAJEMEN, STRATEGI BISNIS DAN KEWIRAUSAHAAN

Homepage: https://ojs.unud.ac.id/index.php/jmbk/index

Vol. 16 No. 2, Agustus (2022), 214-223

The Impacts of Product Quality, Promotion, Brand Association, Purchase Decisions on Japanese Motorcycles

Murpin Josua Sembiring1, Didin Fatihudin2, M.A. Firmansyah3 1Management Departement Faculty of Economics and Business, Ma Chung University, Malang Indonesia

  • 2,3Management Departement, Faculty of Economics and Business, UM Surabaya, Indonesia email: [email protected]


    SINTA 2


DOI : https://doi.org/10.24843/MATRIK:JMBK.2022.v16.i02.p03

ABSTRAK

Persaingan yang semakin ketat di dunia otomotif menuntut setiap perusahaan otomotif khususnya produsen sepeda motor untuk berinovasi mengikuti perkembangan selera dan kebutuhan pasar. Seluruh perusahaan sepeda motor, khususnya perusahaan sepeda motor Jepang, terus berjuang untuk merebut hati konsumen dan berharap produknya dapat menguasai pasar sepeda motor di Indonesia. Mereka harus menerapkan strategi bisnis mereka dengan tepat untuk memenuhi target pasar. Penelitian ini bertujuan untuk mengetahui pengaruh kualitas produk, promosi, dan asosiasi merek terhadap keputusan pembelian dengan menggunakan metode penelitian kuantitatif yang objektif, meliputi pengumpulan dan analisis data pengujian statistik. Berdasarkan pengujian hipotesis, hasil uji F menunjukkan bahwa variabel bebas kualitas produk, promosi, dan asosiasi merek secara simultan berpengaruh terhadap keputusan pembelian. Sebagai perbandingan, uji t menunjukkan bahwa asosiasi merek merupakan variabel yang berpengaruh secara signifikan terhadap keputusan pembelian pelanggan. Penelitian ini menyimpulkan bahwa konsumen Surabaya masih menaruh kepercayaan terhadap kualitas dan citra yang tinggi terhadap sepeda motor produksi Jepang. Implikasinya adalah sepeda motor merk Jepang memiliki brand imagenya yang sangat khas, mudah diingat dan kuat bagi konsumen sebagaimana ditunjukkan lewat pengunaan bintang iklan secara selektip dari artis-artis terkenal. Cara ini masih sangat efektip, sehingga brand image merk sepeda motor Jepang telah masuk pada tahapan brand equity.

Kata kunci: kualitas produk; promosi; asosiasi merek; keputusan pembelian.

Dampak Kualitas Produk, Promosi, Asosiasi Merek, Keputusan Pembelian pada Sepeda Motor Jepang

ABSTRACT

Increasing competition in the automotive world requires every automotive company, especially motorcycle manufacturers, to innovate the development of tastes and market needs. All motorcycle manufacturers, especially Japanese motorcycle manufacturers, keep fighting to win the hearts of consumers and hope that their products can dominate the motorcycle market in Indonesia. They must apply their business strategy appropriately to meet their targeted markets. This study aims to determine the effect of product quality, promotion, and brand association of purchasing decisions using quantitative research methods that are objective, including the collection and analysis of statistical testing data. Based on the hypothesis testing, the F test results show that the independent variables of product quality, promotion, and brand association simultaneously influence the purchase decision. In comparison, the t-test shows that brand association is a variable that significantly influences customers’ purchasing decisions. This study concludes that Surabaya consumers still believe in the quality and strong image of Japanese motorcycles. Employing famous artists has turned into an effective way to create a strong brand image that makes the Japanese motorcycle easy to remember. Thus, the brand image of Japanese motorcycles enters the brand equity stage.

Keywords: product quality; promotion; bra nd association; purchasing decision

INTRODUCTION

The purchase decision refers to an act of deciding to use an item or service based on the profit and loss calculation. Deciding means choosing one of two or more alternatives. Thus, consumers select between objects (goods, brands, shopping places) or choose between alternative behaviors concerning the prevailing items. Moe and Fader (2004) and Park and Fader (2004) examined consumer behavior for browsing information that influences their likelihood of purchasing. Bucklin et al. (2002) and Yadav and Pavlou (2014) do some experiments to examine experimented the extent to which aggregate session-level clickstream data could predict each consumer's purchase decision. Moreover, Goh et al. (2013) and Wells et al. (2011) are interested in examining factors influencing online consumers' purchase decisions from various perspectives. They focus on how the sequential information in consumers' page viewing behavior influences purchasing decisions. The sequential information shows a customer's dynamic strategies in seeking product information. This behavior drives motivation and explains how the subsequent purchase decision occurs.

Figure 1. Distribution of New Domestic Motorcycle Sales Indonesia February 2019

Figure 2. Research hypotheses of the present study

One of the behaviors of human beings that are purposeful when they make decisions is shopping. In the shopping context, customers' shopping goals are both motivators and organizing forces in information searching. The purpose of customers to shop provides a reference for selecting the relevant and valuable properties for creating meaning every time they visit (Murphy & Medin, 1985). Such a guiding force derived from the goal enables consumers to manage the information search path to achieve the goal. Thus, these customers will pay attention to relevant information cues and ignore other cues as irrelevant (Puccinelli et al, 2009). However, this goal-based guidance moves from loose, poorly organized property categories to tightly integrated, well-defined property categories (Barsalou, 1991).

In the era of globalization, many products are offered only to meet the needs of consumers, one of which is a motorcycle product dominated by Japanese manufacturers in the last five years. Japanese motorcycles have become one of the brands for making motorcycle purchasing decisions. The increasing number of purchases from period to period makes the Japanese motorcycle popular and well known by people around the world, especially Indonesian people. The picture below shows Indonesia’ motorcycle brands that have been dominated by Japanese motorcycles.

The development of the business world in the era of globalization requires perfect performance from every process carried out by the company. Marketing is no longer seen as a separate part of the organization, which only acts as a product sales process (Fatihudin & Firmansyah, 2019). The development of technology today provides a significant influence on the growth of the automotive world. Increasing the number of motor vehicles followed by the increase in brand and type of new vehicle would be an unacceptable stance since development of the automotive world in Indonesia and competition in the industrial world of automotive have become increasingly very tight. To face this intense competition, plus diverse community knowledge from various information, automotive industry players must be even more careful in observing market developments than before. Product quality, promotion, and brand association are essential constructs to study; however, no published research has explored their impacts on purchasing decisions, especially Japanese motorcycles. This study proposes extending this research stream to examine whether product quality, promotion, and brand association variables simultaneously influence purchasing decisions. The research problems of the present study are formulated as follows:

  • (1)    What is the relationship between product quality significantly with the purchase decision of Japanese motorcycles?

  • (2)    What is the relationship between promotion with the purchase decision of Japanese motorcycles?

  • (3)    What is the relationship between brand association with the purchase decision of Japanese motorcycles?

  • (4)    What is the relationship between product quality, promotion, and brand association with the purchase decision of Japanese motorcycles.

Based on the problem formulation proposed, theoretical foundation, a framework of the thinking process, and the proposed conceptual framework, research hypotheses are formulated as follows:

H1: Product quality significantly affects the purchase decision of the Japanese motorcycle. H2: Promotion significantly affects the purchase decision of Japanese motorcycles.

H3: Brand association significantly affects the purchase decision of Japanese motorcycles.

H4: Product quality, promotion, and brand association simultaneously affect the purchase decision of Japanese motorcycles.

(Kotler & Amstrong, 2016) define a product as anything that can be offered to a market to satisfy their wants or needs. A product is everything offered to the market to satisfy a desire or need. Moreover, the product has complex traits, tangible, and intangible, including packaging, color, price, prestige, and retailers (Kristianto, 2011). Moreover, Kotler and Amstrong (2016) state that product quality refers to "the ability of a product to perform its functions. It includes its overall durability, reliability, precision, ease of operation and repair, and other valued attributes. Thus, product quality is closely related to the product's ability to carry out its functions, including the overall product, reliability, accuracy, ease of operation and repair, and other valuable attributes.

Product quality is a set of characteristics of goods and services that meet the needs; it is a combined understanding of a product's reliability, accuracy, convenience, maintenance, and other attributes (Firmansyah & Fatihudin, 2017). The products offered by each business entity consequently have their own characteristics that make them different from other competing products even though those businesses belong to the same type of product. As a result, the product has a unique, exceptional superiority produced to reach the targeted market. Concerning products, (Tjiptono, 2015) mentions eight dimensions of product quality: performance, features, reliability, conformance, durability, serviceability, aesthetics, perception of quality.

Promotion is one of the variables in the marketing mix that is very important to be carried out by companies in marketing their products or services. According to Bell (2008), promotion is any marketing activity shown to drive demand. Promotion is a one-way flow of information or persuasion created to direct a person or organization to actions that create an exchange in marketing. Promotion is communication between the seller and buyer that comes from accurate information that aims to change the attitude and behavior of the buyers who do not know the products. The promotion is made known publicly make potential customers buyers. As a result, they are likely to keep remembering the product information being disseminated (Laksana, 2008). Promotion is a communication tool whose delivery of messages is to inform, persuade, remind again to consumers, intermediaries, or a combination of both. Some elements supporting the promotion are usually called the promotion mix in the promotion.

The promotion comes from the Latin promovere, which means moving forward or pushing forward or advancing an idea. According to Indonesian Official Dictionary (KBBI), the notion of marketing refers to promotion leading to introductions to advance business, trade, etc. Promotions include all forms of persuasive communication made to influence customers to buy the goods or services, including publicity, personal selling, and advertising. Thus, promotions help customers know about the goods or services adequately. (Gitosudarmo, 2008) mentions that promotion is an activity aimed at influencing consumers to get acquainted with the products offered by the company to them. Then they become well informed and then buy the product.

Promotion is persuasive communication intended to invite, urge, persuade, convince people to move on. To do so, communicators should plan to organize the news and the delivery techniques to achieve the expected effects in the attitudes and behavior of the recipient (target listeners). Promotion is divided into advertising, personal selling, publicity, sales promotion (Mursid, 2008)

Brand association is an asset that can provide value in the eyes of its customers. The assets they contain can help customers interpret, process, and store information related to the product brand. The brand association greatly influences customers to purchase products and become loyal. In practice, many possible associations and variations of the brand association can provide value for a brand, viewed from the side company or user associations related to brands, including products attributes, intangibles attributes, customer's benefits, relative

price, application, user customer, celebrity person, lifestyle personality, product class, competitors, and country/ geographic area (Durianto & Sugianrto, 2001).

Brand equity or brand association is a set of brand activities (assets) and liabilities (liability) associated with a brand name and its symbols that will reduce and increase the value provided by a product or service to a company or company's customers. Factors affecting brand equity include brand awareness, perceived quality, and various brand associations of other products. Brand equity or brand association is a set of brand activities (assets) and liabilities (liability) associated with a brand name and its symbols. It can reduce and increase the value to a company or company's customers. Factors affecting brand equity include brand awareness, perceived quality, and various brand associations of other products. A brand association can form elements (Aaker, 1991; Durianto & Sugiarto, 2001) such as brand awareness, image, perceived quality, loyalty, and other proprietary brand assets.

Maintaining the existence of these products is always recommended to maintain the image (brand) products circulating with guaranteed quality products: increasingly getting closer to the needs of consumers, providing easy access, and promoting will orientation and satisfaction of consumers. Brand association is an asset that can provide value in the eyes of its customers. The assets they contain can help customers interpret, process, and store information related to products and that brand. A brand association can affect consumer confidence in decision-making based on experience in use or the proximity of associations with various brand characteristics (Firmansyah, 2019).

Consumer purchasing decisions are influenced by consumer behavior. Companies must recognize consumer behavior to find out what consumers need; thus, they are always expected to meet customer needs that impact loyalty. Kotler and Keller (2012) mention that purchasing decisions are the stages that buyer decision-making process takes place. This stage is very crucial that determine whether consumers are likely to buy the products or service offered. Companies focus their orientation and strategy on domestic markets, suppliers, and competitors (Firmansyah & Fatihudin, 2017)

Consumer decision-making is a process that involves consumers individually according to their individual needs. They look for data and information, make choices, and purchase goods or services. Consumer decision-making patterns often go through complex and complicated procedures from product introduction to post-purchase. At these stages, consumers tend to reduce risk (risk management) and list the desired features of various product brands to make purchasing decisions as needed and expected. Consumers generally obtain product and service profiles from many sources, including commercial sources such as product demos, advertisements/promotions, private sources, recommendations from family members or friends, public sources such as radio, newspapers, and magazines, sources of the customer's own experience in using a particular product.

Decision-making is creating choices from various options/alternatives to achieve the planned results (Lunenburg, 2010). This statement contains three essential elements: decision making creates many alternatives from various choices; decision making is part of a process that is not just about deciding the last option from among choices; the desired outcome of a decision is ensured following the goals or targets produced as part of the decision-making activities.

Kotler and Amstrong (2016) state that purchasing decisions include a component of consumer behavior. Consumer behavior is a study of what a person or group looks like in determining, buying, consuming, and products, ideas, or experiences to satisfy consumers' needs.

Based on the purpose of the purchase, consumers can be classified into two groups, namely end consumers (individuals) and organizational consumers. Consumers consist of

individuals and households whose goal is to meet their own needs or to be consumed. Whereas organizational consumers consist of organizations, industrial users, traders, and nonprofit institutions whose buyer's purpose is for business purposes (making profit) or leaving the welfare of its members. Kotler and Keller (2012) revealed that a person might have a different role in every purchase decision. Various roles include an initiator or a person who first realizes desires or needs that have not been fulfilled and proposes ideas to buy a particular product or service.

METHOD

This study used quantitative data analysis techniques. Involving one hundred and seventy Japanese motorcycles users in Surabaya, we selected them using a purposive sampling method (Fatihudin, 2019). Through the Slovin formula with a critical value of 0.5%, we obtained the number of respondents: 170/ (1+170×0.005) = 92 respondents. The authors categorized and summarized the data to understand their patterns easily. Using SPSS 20 for Windows version, the authors use the validity test to examine the instrument quality and data analysis (Gozali, 2011). This study uses multiple regression analysis to determine the effect of each independent variable, such as product quality, promotion, and brand association, of the dependent variable, namely the purchase decision. The equation is explained as follows: Y = α + β1X1 + β2X2 + β3X3 + ε.

RESULTS AND DISCUSSION

Table 1. Regression Equation Model Coefficients

Model

Unstandardized Coefficients

Standardized Coefficients

t

Sig.

B

Std. Error

Beta

(Constant)

-.558

3.292

-.170

.866

1

(X1)

.158

.076

.210

2.066

.042

(X2)

.235

.114

.219

2.067

.042

(X3)

.196

.089

.220

2.197

.031

a. Dependent Variable: Total_Y Source: Researcher, processed (2019)

Based on the table above, the regression equations formed in this regression test are: Y = - 0,558 + 0,158X1 + 0,235X2 + 0,196X3 + e

Table 2. F-Test Results (Simultaneous)

ANOVA

Model

Sum of Squares

Df

Mean Square

F

Sig.

Regression

50.616

3

16.872

8.618

.000b

1          Residual

172.287

88

1.958

Total

222.902

91

a. Dependent Variable: Purchase Decision

Predictors: (Constant), Product Quality, Promotion, Brand Association

The results of testing the model (simultaneously) show a F count value of 8.618, with a significance value of 0.000. The F count (8.618)> F table (2.71) and the resulting significance value of 0.000 and this value is much smaller than 0.05. Thus, it can be concluded that H4 is accepted. This means that the variables product quality, promotion, and brand association together (simultaneously) have a significant effect on the purchase decision of Japanese

motorcycle. Thus, the proposed research model is fulfilling the requirement. The results of the F-test analysis show that the F-value is greater than the F table; it can be concluded that the variables of product quality, promotion, and brand association simultaneously or jointly affect the purchase decision. Thus, the hypothesis that product quality, promotion, and brand association variables simultaneously influence purchasing decisions can be accepted.

This finding also indicates that the people of Surabaya still trust the production of Japanese brand motorcycles for the quality of their products. The promotional instruments are right on target, plus the brand association is still embedded in people's memories if the motorcycle is a good Japanese production. The Japanese motorcycle brand has a strong image where consumers remember the brand in various ways, through attributes, experiences, and images, making the motorcycle brand from Japan stand out and be easily remembered by the public. The brand image of Japanese motorcycles has entered the realm of brand equity so that people often get the wrong perception by asking what brand is your Honda motorcycle? Even though Honda is a Japanese motorcycle brand.

Table 3. T-test results (partial)

Coefficients

Model              Unstandardized Coefficients     Standardized        T         Sig.

Coefficients

B

Std. Error

Beta

(Constant)

-.558

3.292

-.170

.866

1

Product Quality

.158

.076

.210

2.066

.042

Promotion

.235

.114

.219

2.067

.042

Brand Association

.196

.089

.220

2.197

.031

a. Dependent Variable: Purchase Decision

The calculation t-test above shows a t count for the product quality variable of 2.066 with a significance level of 0.042. Since the value of t count (2.066) is bigger than (>) t table (1.987), with the significance value of 0.042 less than 0.05, H1 is accepted. The independent variable of product quality partially has a significant effect on the dependent variable on purchasing decisions.

Product quality significantly affects purchase decisions of Japanese motorcycles in Surabaya. This finding of the present study was supported by Fatihudin's (2017) study, who proved that product quality positively and significantly affects purchase decisions. These results are also consistent with the research results conducted by Gunawan & Wahyuni (2018), showing that product quality has a positive effect on purchase decisions. The quality of Japanese brand motorcycles has long been known and used by the public, and its products' quality is known. The quality referred to the quality of the product is also the quality of the product design. It adapts to the development of consumer tastes so that the competition between the quality of motorcycle brands is very tight.

The calculation results obtained a t count for promotion of 2,067 with a significance level of 0.042. Because t count (2.067)> t table (1.987) and the resulting significance value of 0.042 is less than 0.05, H2 is accepted. This means that the independent variable of promotion partially affects the dependent variable (purchasing decisions). Promotion significantly affects purchase decisions of Japanese motorcycles in Surabaya. The result of this study was supported by research conducted by Firmansyah and Mahardhika (2015). They found that promotion positively and significantly affects purchase decisions. These results are consistent with (Weenas, 2013) study, saying that the test results prove that product quality, price, promotion, and service quality positively influence the dependent variable, namely purchasing decisions. The result of this study was supported by the study by (Fatihudin, D.,

& Firmansyah, 2019) who state that good packaging design can create consumer comfort value and producer promotion value. Regarding the proper promotion and part of the marketing mix, (Assauri, 2011) states that marketing is an effort to provide and deliver suitable goods and services to the right people at the right place and time and at the right price with appropriate promotion and communication.

Promotion is a force influencing buyers' decision to buy Japanese motorcycles. The Indonesian companies selling Japanese brand motorcycle often do promotions through motorcycle racing events in fourty big cities in Indonesia. In addition, they also intensively expand their promotion through the internet, print media, television, and exhibitions. Many Indonesian top artists in Indonesia, such as Agnes Monica, Daniel Mananta, and the Nidji Band have been employed to make these Japanese motorcycle brands widely known by Indonesian customers.

The t-test calculation shows that t-count for the brand association is 2.197 with a significance level of 0.031. Because t count (2.197) is bigger than t table (1.987) and the resulting significance value of 0.031 is less than 0.05, thus, H3 is accepted. This means that the independent variable promotion partially influences the dependent variable on purchasing decisions. Brand Association significantly affects the purchase decisions of Japanese motorcycles in Surabaya. The result of this study was supported by research conducted by (Akbar & Wymer, 2017), stating that the results showed a significant relationship between the independent variables, namely brand image, price, and product quality, on the dependent variable, namely purchasing decisions. The result of this study was supported by (Sari & Santika, 2017) that state brand image, brand and brand association positively and significantly impact the repurchase

Brand association is beneficial to build companies’ brand identity because it helps consumers remember Japanese motorcycle brands, including their distinctive quality. Brand association is a differentiator that make certain motorcycle brands different from other competing brands. It serves as quality assurance offered to consumers, guaranteeing a positive image of the motorcycle brand. Japanese motorcycles have brand associations that have a good image in customers' eyes. When launching new product variants with the same brand, customers always trust Japanese motorcycles.

Table 4. Partial Correlation Values

Model

Standardized Coefficients

Beta

(Constant)

1                    Product Quality

.210

Promotion

.219

Brand Association

.220

Three independent variables consist of product quality, promotion, and brand association; the brand association variable has the largest β (beta) coefficient value of 0.220, which is the most significant value among the other independent variables. Thus, it is concluded that the independent variable that has a dominant influence on the dependent variable of purchasing decisions is the brand association variable). Various brand associations developed by Japanese motorcycle brands start from attribute-based, including the defining features of the brand or product or service. Features or attributes are used to support promotional materials of the brand or product or service to stand out from competitors. Customers' decision to buy is highly dependent on the customer's ability to remember the brand. For example, customers often associate the products with Japanese motorcycle brands. In day-to-day life, it is common to find people doing conversation, such as, what “Honda” do

you want to buy? They use the term Honda to define all kinds of motorcycles. This shows how the brand image of Japanese-made Honda motorcycles has become the brand equity.

Attributes generally exist in the physical composition of the product, appearance, price/discount, or a combination of packaging. The potential attribute of being a tagline strengthens product brand promotion. Celebrity-based brand associations are also commonly used as a promotional strategy. Japanese motorcycles are intelligently and meticulously very productive using the celebrity image of a famous world-class motorcycle racer (MotoGP) such as Valentino Rossi. He became the Star of Yamaha's newest sport motorbike advertisement, the R25, which consumers widely accepted in Indonesia in 2014. R25 uses 250 ccs inline-four strokes two-cylinder injection engine, DOHC direct-drive camshaft with eight valves. This engine has a high compression combustion chamber, down draft type intake duct, 12 independent hole injectors, liquid cooled, DiASil Cylinder, and Yamaha Forged pistons that have been tested for durability.

Celebrity brand associations can turn people into potential consumers quickly and thus promote sales increase. By contrast, if people do not like certain celebrities for some reasons, they will not be interested in buying the products regardless of their outstanding quality. As a result, employing celebrity-based brand associations is not a guarantee to increase consumer demand for production. Thus, it is necessary to accurately select celebrities’ profiles in terms of their fames, including intelligence, beauty, and behavior as widely idolized by the segmented consumers.

CONCLUSIONS

The results of this research simultaneously of the three variables have a significant influence in determining purchasing decisions, and therefore the company should pay attention to these three factors. Companies should not only see good product quality and attractive promotional ways to market their products but also look at and consider their brand associations that are already familiar in the minds of consumers. In doing so, consumers continue thinking of Japanese motorcycles manufactured. Celebrity-based brand associations that are carefully selected, known, and admired by the public are very strategic to increase the rate of motorcycle sales. Further research can add other variables that have never been discussed before that affect purchasing decisions. Involving more variables makes further research complex and likely to contribute the body of knowledge of the related topics.

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