View of The Influence Of Price & Brand Image On Purchase Intention Of Polygon Bike

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Turkish Journal of Computer and Mathematics Education Vol.12 No.8 (2021), 1319-1323

Research Article

The Influence Of Price & Brand Image On Purchase Intention Of Polygon Bike

Fadhlan Ridhwana Sujana

1

_{, Nidar Nadrotan Na’im}

2

1_{Widyatama University, Indonesia}

2_{Communication and Informatics Office, West Java Provincial Goverment, Indonesia.} 1_{Fadhlan.ridhwana@widyatama.ac.id}

Article History: Received: 10 January 2021; Revised: 12 February 2021; Accepted: 27 March 2021; Published online: 20 April 2021

Abstract: This research was conducted to analyze the variable price and brand image and their influence on purchase intention in Polygon bikes. The trend of cycling during the Covid 19 pandemic increased quite high. This is because cycling is a sport that can be done to increase the body's immunity in order to prevent the transmission of Covid 19, besides that cycling is an outdoor sport and not crowding so that it minimizes the risk of contracting Covid 19. This research is a type of explanatory study and the sampling method is simple random sampling. The population in this study were Polygon bike users in Bandung city, and the samples taken were 100 respondents who used Polygon bikes in Bandung city. The results of this study indicate that the price and brand image variables have a positive and significant influence on purchase intention in Polygon bikes. The author advises companies to maintain their brand image and also keep prices affordable by many as a strategy to increase consumer purchase intention so that it can increase sales of polygon bikes.

Keyword : Price, Brand Image, Purchase Intention 1. Introduction

The Covid-19 pandemic, which has spread throughout the world, has caused various industrial sectors in the world declined and made global economic growth unpredictable. In 2020, the world economy shrank by 4,3 percent, more than two and a half times decline during the global financial crisis 2009. The 4,7 percent economic recovery expected in 2021 will barely offset 2020 losses. UN report describes a sustainable recovery of a pandemic will depend not only on the magnitude of the stimulus and the rapid rollout of vaccines, but also on the quality and effectiveness of these measures to build resilience to future shocks. The United Nations warns that the socio-economic impact of the Covid-19 pandemic will be felt for many years to come. Indonesia confirmed the first case of Covid-19 infection in early March 2020. Since then, various countermeasures have been made by the government to reduce the impact of the Covid-19 pandemic in various sectors. Almost all sectors affected, the economic and health sectors have suffered serious impacts due to the corona virus pandemic. Restrictions on community activities have an effect on business activities which has an impact on the economy. The Central Statistics Agency (BPS) said that Indonesia's economic growth in the second quarter of 2020 was minus 5,32%. Previously, in the first quarter of 2020, BPS reported that Indonesia's economic growth only grew by 2,97%, down far from the growth of 5,02% in the same period last 2019. Weak economic growth also had an impact on the labor situation in Indonesia. (https://www.kompas.com).

Minister of Finance Sri Mulyani Indrawati conveyed that the Covid-19 pandemic was pressing the global and national economy deeply. However, national economic conditions still tend to be better than global conditions. In early 2020, world economic growth started with a good optimism. But unfortunately, economic conditions seems to decrease when it entered mid-March, with announcement of the Covid-19 pandemic by WHO. The pandemic has caused many countries around the world applies lockdown restrictions. (https://ekonomi.bisnis.com).

One of efforts to prevent Covid 19 is community suggested to maintain immunity by the government. One way is by exercising. There are many choices of sports that can be done in the midst of Covid 19 pandemic, which is indoor or outdoor sports. Exercising outdoors can be an alternative, as long as it’s not crowded. This is because exercising outside the room can provide vitamin D intake from sunlight which is useful for increasing body immunity. Outdoor sports that many people do is cycling, because cycling is practical sport and not crowding so that makes cycling is a sport that is in great demand in the midst of Covid 19 pandemic.

The trend of cycling during a pandemic has made the demand for bicycles jumped significantly and has brought blessings to the business sector. Bicycle sales increased in the new normal period, increasing demand for bicycles made manufacturers increase production capacity up to 30%. The cause of the increasing demand for bicycles is

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Turkish Journal of Computer and Mathematics Education Vol.12 No.8 (2021), 1319-1323

Research Article

because people are becoming aware to healthy live in the midst of a pandemic. Bicycles becomes driving Indonesia's Economy during the Pandemic. Not only in Indonesia, the increasing demand for bicycles in several countries has also increased. In America, since March-June 2020 it has increased by 40 percent. In the UK, personal bicycle use has increased by 33 percent. (https://finance.detik.com).

In Indonesia, there are several local brand bikes, including Polygon, United, Pacific, Element and Wim Cycle. One of the bikes that to be a highlight in Indonesia is Polygon. Polygon is one of the best bicycle brands in Indonesia. It’s products have quality that cannot be doubted. In addition, the quality of Polygon does not only meet national standards (SNI). Besides SNI, Polygon also has Japanese (JIS) and European (EN) standards. Polygon is a global quality brand at competitive prices. Because Polygon is a bicycle with an affordable price and also the best bicycle brand in Indonesia, the authors is interested in conducting research on the price and brand image of Polygon bikes that have an impact on consumer purchase intention.

2. Literature Review an Conceptual Framework a. Price

Price is an amount of money or goods needed to obtain a combination of other goods accompanied by the provision of services. There are four indicators of the price : (1) affordability, (2) the suitability of the price with the quality of the products, (3) price competitiveness, and (4) the suitability of the price of the benefit (Kotler & Amstrong, 2012).

b. Brand Image

Brand Image is the perception of consumers or beliefs, as reflected by the associations that have been embedded in the memories of consumers (Kotler and Keller, 2009). Brand image is very vital for any company because of the many advantages it gets, such as the perception of good quality, good brand loyalty so that it is able to increase greater profit margins and opportunities to expand the brand (brand extension) (Tjiptono, 2005). ). There are five Brand Image Indicators: (1) Attribute, (2). Fungtional, (3). Symbolic, (4). The Experience, (5). Overall Evaluation (Dimyati & Subagio, 2016).

c. Purchase Intention is considered to be one of the most important parts for a company, because purchase intentions promote more profitable businesses to the industry (Xiao, Yang, & Iqbal, 2018). There are four indicators of purchase intention: Transactional, Referential, Preferential, Explorative (Ferdinand, 2002).

3. Methodology

The research in this article is explanatory study, which is research that aims to examine the clausalities between variables that explain a certain phenomenon (Zulganef, 2018). In this study, there are 3 variables, namely Price (X1), Brand Image (X2) and Purchase Intention (Y).

Sources of data in this study use primary and secondary data, by taking data from the internet and questionnaires directly to the respondent. Population is a group of people, events or things that are interesting to study which has been limited by the author himself (Zulganef, 2018). The population in this study were Polygon bicycle users in Bandung, Indonesia. The sample is defined as the part of the population consisting of selected members of the population. The sample in this study were 100 respondents from Polygon bicycle users in Bandung city.

Hypotheses and research model in this study are as follows:

a. H1 : Price has a positive and significant effect on Purchase Intention b. H2 : Brand Image has a positive and significant effect on Purchase Intention

Purchase

Intention

Brand

Image

Price

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Turkish Journal of Computer and Mathematics Education Vol.12 No.8 (2021), 1319-1323

Research Article

Figure 1 Conceptual Framework IV. Result and discussion

4.1 Respondents characteristics

Based on the sample questionnaire, it was found that polygon bicycle users in Bandung were dominated by men with a presentation as much as 79% and women as much as 21%. Meanwhile, in the age group, it was found that the highest number of Polygon bicycle users was between the ages of 31-40 years.

Table 1.

Respondents characteristics by Gender

Gender Number of People Percent age Male 79 79 % Female 21 21 % Total 100 100 %

Source : data processed 2021

Table 2.

Respondents characteristics by Ages

Age Number of People Percentage <20 7 7 % 21-30 16 16 % 31-40 53 53 % >41 24 24 % Total 100 100 %

Source : data processed 2021 4.2 Validity Test of Variable

Table 3 shows the Validity Test of Variable, where in 3 variables after testing the validity with Smart PLS it is found that the AVE of the three variables is above 0.5 so that all variables are valid and can be continued to the next stage.

Validity Test of Variable

Variable Average Variance Extracted Description Price 0.581 Valid Brand Image 0.577 Valid Purchase Intention 0.668 Valid

Source : data processed 2021 4.3 Reability Test of Variable

In data processing, the composite reliability of each variable was obtained above 0.7. That way all the variables in this study are realistic and can be continued to the next stage.

Table 4.

Reliability Test of Variable Variable Cronbach’s Alpha Composite Reliability Description Price 0.760 0.847 Reliable

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Turkish Journal of Computer and Mathematics Education Vol.12 No.8 (2021), 1319-1323

Research Article

Brand Image 0.814 0.871 Reliable Purchase Intention 0.834 0.890 Reliable

Source : data processed 2021 4.4 R-Square

Table 5 shows the results of data analysis processing using PLS that the R-square Purchase intention value is 0.501, it can be explained that the variables of price and brand image explained by 50,1%, while 49,1% are other variables outside the research.

Table 5. R-Square

Variable R-Square R-Square

Adjusted Purchase

Intention

0.501 0.491

4.5 Hypothesis Testing

Figure 2 shows the research model using Smart PLS and Table 6 measurement of hypothesis testing. The effect of price on purchase intention is positive (0.313) and significant p <0.01 so that hypothesis 1 is accepted. Likewise, the effect of brand image on purchase intention is positive (0.438) and a significance of p <0.01, so hypothesis 2 is accepted. So in table 6 shows that the variable price (x1) and brand image (x2) have a positive and significant effect on purchase intention.

Figure 2 PLS Model Table 6. Hypothesis Testing Variable Path Coefficients Hypothesis X1 Y 0.313 Accepted X2 Y 0.438 Accepted

The results of this study indicate that the price variable has a positive and significant effect on purchase intention in Polygon bikes, so it can be concluded that consumers consider the price of Polygon bikes in their interest in buying these bikes. The Brand Image variable also has a positive and significant effect on purchase intention in Polygon bikes. Therefore, based on this research, Polygon must be able to maintain brand image towards consumers, because Polygon is the best bicycle produced in Indonesia. Furthermore, the price of Polygon

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Turkish Journal of Computer and Mathematics Education Vol.12 No.8 (2021), 1319-1323

Research Article

4. Conclusions

This study aims to analyze the variables that can increase purchase intention Polygon bikes. These variables include price and brand image. The results showed that the variable price and brand image showed a positive and significant effect. Therefore, PT. Insera, as a company that produces Polygon bikes, to maintains brand image and also the price of Polygon bikes so that purchase intention never decreases and increases as well.

References

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