ANALYSIS OF THE INFLUENCE OF PRICE AND SERVICE ON PURCHASE DECISIONS IN PRODUCT QUALITY MEDIA WOOD PROCESSING “UD APID JAYA FURNITURE” DISTRICT LAMONGAN

Abstract

This study aims to analyze the effect of price and service on purchasing decisions with product quality as a mediating variable in the wooden furniture processing business UD. Apid Jaya in Lamongan Regency. The background of this study is based on the importance of understanding the factors that influence consumer decisions in choosing furniture products, especially in terms of price, service, and product quality. This study uses a quantitative approach with the Partial Least Square-Structural Equation Modeling (PLS-SEM) analysis method. The research sample consisted of 109 respondents who were consumers of UD. Apid Jaya. The results of the study indicate that price and service have a positive and significant effect on product quality, and product quality has a positive and significant effect on purchasing decisions. In addition, price and service also have a significant effect on purchasing decisions both directly and indirectly through the mediation of product quality. This study concludes that product quality plays an important role in strengthening the relationship between price and service on consumer purchasing decisions. These findings are expected to be strategic input for wooden furniture business actors in increasing competitiveness and customer satisfaction.