The Effect of Location and Promotion on Purchase Decisions Through Price as an Intervention Variable at The Surabaya UMKM Center, Kriya Gallery (Skg), Siola, Surabaya
DOI:
https://doi.org/10.52909/jemeb.v5i1.235Keywords:
Location, Promotion, Price, Purchasing Decision, MSMEs, Surabaya Kriya Gallery.Abstract
This study aims to analyze the influence of location and promotion on purchasing decisions, with price as an intervening variable, at the Surabaya UMKM Center, Kriya Gallery (SKG), Siola, Surabaya. The background of this study is based on the importance of strategic location and effective promotional strategies in attracting consumers and driving purchasing decisions, especially amidst intense business competition in the MSME sector. Furthermore, price also plays a crucial role as a bridge between marketing strategy and consumer decisions. The research method used was quantitative with a causality approach. The population of this study was all consumers who had made purchases at SKG Siola, Surabaya. The sampling technique used was purposive sampling, with specific criteria relevant to the research objectives. Data were collected through questionnaires distributed to respondents. Data analysis was conducted using Partial Least Squares (PLS) using SmartPLS software. The results showed that location and promotion had a positive and significant influence on price. Furthermore, location and promotion were also shown to have a positive and significant influence on purchasing decisions. Interestingly, price was shown to partially mediate the effect of location and promotion on purchasing decisions. This indicates that although location and promotion directly influence purchasing decisions, this influence is also partially channeled through consumer price perceptions.
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