Analysis of Factors Affecting Consumer Purchasing Decision on Aice Ice Cream in Malang City by Using Partial Least Square (PLS) Method
Panji Deoranto, Gloria Elizabeth Malau, Masud Effendi

Department of Agroindustrial Technology
Faculty of Agricultural Technology
Universitas Brawijaya

Abstract

Ice cream business development in Malang city nowadays begins to increase due to competition between one ice cream product and others. One of the new ice cream products that recently presents is Aice ice cream. The purpose of this study was to determine the effect of price, brand image and product quality on buying interest and purchasing decisions on Aice ice cream, and the effect of buying interest mediating price variables, brand image, product quality on purchasing decisions. This study used Price variable (X1) Brand Image (X2), Product Quality (X3) on Buying Interest (Y1) and Purchasing Decision (Y2), with sample of 100 respondents in Malang City who have bought and consumed Aice ice cream products in last six month. PLS (Partial Least Square) method was used to analyze the data. The result of this study indicated that the Price variable (X1), Brand Image (X2) and Product Quality (X3) have significant influence toward Buying Interest (Y1) and Purchasing Decision (Y2). Buying Interest variable (Y1) is able to mediate the relevancy between Price variable (X1), Brand Image (X2), and Product Quality (X3) on Purchasing Decisions (Y2). The variable that has the most dominant influence on purchasing decisions is the Product Quality variable (X3).

Keywords: Aice Ice Cream, Purchasing Decision, Partial Least Square

Topic: AGROINDUSTRIAL PRODUCTION SYSTEM MANAGEMENT AND REGULATION