The Influence Of Price And Product Quality On Consumer Purchasing Decisions: Evidence From The Indonesian Retail Sector Using Multiple Linear Regression

Abstract

This study aims to examine the influence of price and product quality on consumer purchasing decisions. The object of this research is consumers who have made purchases in the Indonesian retail sector. The population includes retail product consumers, and the sampling technique used is purposive sampling. The data analysis method employed is multiple linear regression analysis.

The results show that both price and product quality variables have no significant effect on purchasing decisions, either partially or simultaneously. The coefficient of determination (R²) is very low (0.001), indicating that these variables explain only 0.1% of the variation in purchasing decisions, with the remaining variance likely influenced by other factors not covered in this study.

In conclusion, although price and product quality are commonly perceived as key factors influencing consumer decisions, this study finds that they do not significantly affect purchasing decisions in the context of Indonesia’s retail consumers.