THE IMPACT OF PERCEIVED QUALITY AND BRAND EQUITY TOWARDS PURCHASING DECISION FOR PERTAMINA (A CASE STUDY OF LPG 12 KG IN TARAKAN CITY)

Abstract

This research is encouraged by business rivalry condition of the local and foreign product in Indonesia frontier area. This research focused on Indonesian and Malaysian LPG product in Tarakan, North Kalimantan. Pertamina, Petronas, and Shell were the LPG brands of 12 kg that can be found in this city. As for the problem with this research is, “Are the perceived quality and brand equity (brand awareness, brand associations, brand loyalty) affect customer purchase decision for Pertamina LPG 12 kg in Tarakan. This research tried to determine the factors that influence consumers to purchase the LPG product of Pertamina, especially for LPG consumers at Karang Anyar and Perumnas Regencies in Tarakan. The purpose of this research to analyze the effect of Perceived Quality (X1), Brand Awareness (X2), Brand Associations (X3), and Brand Loyalty (X4) to Purchase Decision (Y). In this study, data were collected through questionnaires to 200 LPG consumers using simple random sampling method to determine the response of respondents of each variable. Then analyze the data obtained in the form of quantitative analysis. Quantitative analysis include validity and reliability test, weighted mean, factor analysis, the classic assumption test and multiple regression analysis to test the hypothesis through T-test, F-test and coefficient of determination (R²). Data analysis techniques used were linear regression analysis that serves to prove the research hypothesis. The data that have met the reliability test, validity test, factor analysis and classical assumption processed as to produce the following regression equation: Y = 0.298 X1 + 0.113 X2 – 0.042 X3 + 0.482 X4 Results of the analysis found that from the four factors, perceived quality, brand awareness, brand associations and brand loyalty, only perceived quality and brand loyalty have a positive and significant influence on purchase decision. Hypothesis testing using T-test showed that two independent variables (perceived quality and brand loyalty) significantly affect purchase decision as dependent variables. Then through the F test showed that the variable perceived quality, brand awareness, brand associations and brand loyalty together has a significant effect to the purchase decision. Figures adjusted R square of 0.529 indicates that 52.9 percent of the variations of purchase decision can be explained by four independent variables used in the regression equation while the rest of 47.1 percent is explained by another variable outside the four variables used within this research.