CC BY
1
UDC 332; DOI 10.18551/rjoas.2024-01.04
SOCIO-ECONOMIC, PERSONAL AND MARKETING FACTORS IN DETERMINING
PURCHASING DECISIONS FOR FRESH PORK IN KUPANG CITY, INDONESIA
Ottu Melliany Anggelina, Nalle Agus Arnold, Krova Maria, Lalus Matheos F., Lole Ulrikus R.*
Faculty of Animal Husbandry, Marine Affair and Fishery, University of Nusa Cendana, Indonesia *E-mail: ulrikusromsenlole@gmail.com
ABSTRACT
This study aims were to analyze the influence of: 1) socio-economic, personal and marketing mix on consumer perceptions, 2) socio-economic, personal and marketing in determining purchasing decisions for fresh pork in Kupang City, and 3) socio-economic, personal and marketing through perceptions in determining purchasing decisions. The research was conducted in 3 sub-districts in Kupang City. The sampling technique in this study used a non-probability sampling method using purposive sampling technique. The results showed that: 1) socio-economic factors, personal, product, price, and promotion have a significant effect on consumer perceptions, while the location factor has an insignificant effect on consumer perceptions; 2) socio-economic factors, products, prices, and consumer perceptions have a significant effect on purchasing decisions for fresh pork in Kupang City, while personal, location, and promotion factors have an insignificant effect on purchasing decisions for fresh pork in Kupang City; 3) socio-economic, personal, product, price, and promotion factors have a significant effect in determining the decision to purchase fresh pork in Kupang City through consumer perceptions, while the location factor has an insignificant effect in determining the decision to purchase fresh pork in Kupang City through consumer perceptions.
KEY WORDS
Socio-economic, personal, marketing, consumer perception, purchase decision.
Pork is one of the livestock products to fulfill the need for protein for the community. Pork contains potassium, phosphorus, zinc, niacin (vitamin B3), thiamine (vitamin B1), riboflavin (vitamin B2), and vitamin B6. However, pork consumption has a disadvantage because not all people can consume pork, so it is only consumed by some people who are not hindered by religious, cultural and traditional factors.
The pig population in Indonesia in 2022 was 7,280,310 heads with the highest pig population development in East Nusa Tenggara reaching 2,350,020 (Central Bureau of Statistics, 2022). Apart from being used to fulfill animal protein needs and for processed food, pork is also used for religious ceremonies in NTT. In terms of social, cultural and personal aspects, the population of Kupang City consists of various tribes, so that in addition to being consumed, pigs are still used in certain traditional events, pork consumption also increases during Christian religious celebrations such as Easter, Christmas and New Year.
Every consumer in buying a product has a different behavior from one another. This difference can be caused by consumer habits, socio-economic conditions, or by other things. Consumer behavior is influenced by perceived physical perceptions of stimuli in the form of physical, visual, and verbal communication. Consumer openness to many stimuli requires marketers to provide something special as a stimuli to influence and attract consumer attention, one of which is the marketing mix (Setiadi, 2019). This marketing mix consisting of product, price, location, and promotion is a tool for companies and traders in marketing their products so that it can influence the purchasing decision-making process by consumers (Setiawan and Sugiharto, 2014). Based on the description above, the researcher is interested in conducting research by analyzing Socio-Economic, Personal and Marketing Mix Factors in Determining Pork Purchasing Decisions in Kupang City.
METHODS OF RESEARCH
This research was conducted in 3 sub-districts in Kupang City consisting of Subdistrict of Alak, Kelapa Lima, and Maulafa. The sampling technique in this study used a non-probability sampling method using purposive sampling technique (Sugiyono, 2018). This research is a type of causal associative research with a quantitative approach. In this study, the data used are primary data and secondary data. Primary data is obtained directly from respondents through observation, interviews and distributing questionnaires. The questionnaire in this study used a Likert scale (Sugiyono, 2018). While secondary data is obtained through various sources such as: scientific journals, books, articles, websites and other sources that are relevant and can be used as references in this study (Sekaran, 2011). Data processing in this study used SmartPLS SEM (Partial Least Square-Structural Equation Modeling) software. In this study, three stages were carried out, namely: outer model analysis. inner model analysis, and hypothesis testing.
Outer Model Analysis: Evaluation of the measurement model or outer model is carried out to assess the validity or reliability of the model. Outer models with reflexive indicators are evaluated through convergent and discriminant validity of latent construct forming indicators and composite reliability and Cronbach alpha for the indicator block (Ghozali, 2016). Inner Model Analysis: Inner model analysis is also known as structural model analysis, which aims to predict the relationship between latent variables (Ghozali, 2016). Hypothesis Test: Hypothesis testing can be seen from the t-statistic value and probability value (Husein, 2015). For hypothesis testing, namely by using a statistical value, for alpha 5% the t-statistic value used is 1.96. So that the criteria for acceptance or rejection of the hypothesis is Ha accepted and H0 rejected when the t-statistic >1.96. To reject or accept a hypothesis using probability, Ha is accepted if the p value is <0.05.
RESULTS AND DISCUSSION
The profile of buyers/consumers of fresh pork in Kupang City in this research can be studied based on age, occupation, education and income level (Table 1).
Table 1 - Age, occupation, education, and income
Description Percentage (%)
Age:
24-30 years 19.0
31-40 years 29.0
>40 years 52.0
Work:
Civil servants/soldier/police Honorer 71.0
29.0
Education:
High school/equivalent Diploma 11.0
Strata-1 (graduate) 13.0
Strata-2 (post graduate) 21.0
55.0
Revenue:
Rp 1,000,000-2,000,000 6.0
Rp 2,000,000-3,000,000 24.0
Rp 3,000,000-4,000,000 27.0
Rp >4,000,000 43.0
Table 1 show that consumer data is dominated in the 31-40 age range. The age group of consumers who predominantly buy fresh pork in Kupang City is a mature age group and has consideration and experience in making pork purchasing decisions. With a productive age, it also affects consumers in consuming pork by looking at the nutritional value contained in it. This is also in accordance with the results of research (Aisyah, 2011), that respondents at a productive age are identified as more easily responding to information obtained including information about the importance of animal protein consumption from livestock which is important for the health of the human body.
Table 1 show that the dominance of work as civil servants/soldier/police of 71.0% can explain that the type of work as civil servants/soldier/police tends to have a good and fixed income. By having a good job, it will generate a good income as well, seen from the price of pork which is quite expensive in making purchasing decisions, consumers consider from various aspects, of course, in terms of price adjusting to the income they get, so that having a good income from their job affects consumers in purchasing fresh pork. The pattern of decisions in buying a food product is influenced by occupation (Putri et al., 2021).
Figure 1 - Loading factor values
Table 2 - Value of discriminant validity (Cross Loading)
n/n Socio-economic Personal Product Price Location Promotion Perception Purchase Decision
X1 X2 X3 X4 X5 X6 Y1 Y2
X1.1 0.892 -0.022 0.417 0.499 0.466 0.570 0.220 0.133
X1.2 0.860 -0.084 0.327 0.409 0.247 0.417 0.196 0.088
X1.3 0.850 -0.110 0.274 0.417 0.363 0.527 0.207 0.103
X3.1 -0.108 0.806 -0.071 0.037 0.052 -0.204 0.442 0.180
X3.2 -0.025 0.825 0.198 0.404 0.229 0.211 0.335 0.368
X4.3 0.370 0.054 0.926 0.284 0.294 0.367 0.132 0.111
X4.4 0.367 0.097 0.942 0.262 0.266 0.381 0.148 0.123
X5.2 0.549 0.299 0.243 0.836 0.359 0.337 0.596 0.228
X5.3 0.368 0.196 0.264 0.903 0.271 0.524 0.516 0.602
X6.2 0.390 0.246 0.302 0.359 0.910 0.579 0.299 0.210
X6.4 0.362 0.061 0.279 0.251 0.789 0.627 0.193 0.187
X6.5 0.364 0.137 0.226 0.314 0.918 0.518 0.380 0.287
X7.1 0.531 0.020 0.341 0.342 0.431 0.763 0.335 0.171
X7.3 0.457 -0.028 0.283 0.505 0.374 0.767 0.283 0.268
X7.4 0.486 0.110 0.373 0.439 0.669 0.855 0.388 0.300
X7.5 0.374 -0.118 0.254 0.295 0.505 0.772 0.280 0.173
X8.1 -0.067 0.246 0.039 0.484 0.210 0.255 0.770 0.619
X8.2 0.253 0.459 0.122 0.492 0.275 0.346 0.879 0.520
X8.3 0.382 0.427 0.226 0.666 0.428 0.450 0.843 0.392
X8.5 0.237 0.461 0.115 0.463 0.250 0.324 0.855 0.482
X9.1 0.160 0.265 0.151 0.533 0.210 0.290 0.550 0.927
X9.2 0.057 0.374 0.063 0.372 0.055 0.093 0.529 0.895
X9.3 -0.051 0.355 0.039 0.333 0.198 0.191 0.478 0.906
X9.4 0.249 0.237 0.177 0.524 0.458 0.446 0.584 0.854
Table 1 show that the majority of consumers have an undergraduate educational background (S1) of 55%. The high level of education of respondents will affect consumer knowledge in making decisions to purchase pork. The higher the education of consumers, the more information consumers can absorb and receive. Consumers with a high enough level of education also have sufficient knowledge and information about the health and nutritional value contained in a product, so that it will influence consumers in pork purchasing decisions. This is in line with research by Suprayitno et al. (2015) which states that
consumers who have higher education tend to behave more critically and carefully in consuming food.
In Figure 1, after eliminating several invalid indicators, the analysis was carried out and obtained the loading factor value in all indicators that met the criteria, namely >0.7 (Husein, 2015) said to be valid.
The loading value of each indicator item on its construct is greater than the cross loading value. Thus it can be concluded that all constructs or latent variables already have good discriminant validity, where the construct indicator block is better than other block indicators.
Table 3 - Cronbach's alpha, composite reliability and average variant extracted (AVE)
Variables Composite Reliability AVE
Social economy 0.901 0.752
Personal 0.798 0.665
Products 0.932 0.872
Price 0.862 0.758
Location 0.907 0.765
Promotion 0.869 0.625
Perception 0.904 0.702
Purchase Decision 0.942 0.802
The value of composite reliability can be used in testing the reliability value of each indicator in a variable. The instrument used in the variable is said to be reliable if it has a composite reliability >0.7 (Abdillah and Jogiyanto, 2018). In Table 3, the composite reliability value for each variable is >0.7, indicating that each item that measures socio-economics, culture, personal, product, price, location, promotion is consistent / reliable in measuring each variable.
The AVE value illustrates the amount of variance or diversity of manifest variables that can be owned by latent constructs. Thus, the greater the variance or diversity of manifest variables that can be contained by latent constructs, the greater the representation of manifest variables on latent constructs. In Table 3, the AVE value for each variable is >0.50; it is known that each indicator of the latent construct is able to explain 50% or more of its variance (Wong, 2013). Thus the construct is declared valid or it can be said that the indicator explains the construct.
After testing the outer model that has met the requirements, the next step is to test the inner model. The inner model can be evaluated by looking at the R-square.
The R-Square value (R2) is used to determine the predictive power of the structural model. The criteria for the interpretation value of R square are: 0.25 - low influence; 0.50 -moderate influence; 0.75 - high influence (Hair et al., 2017).
Table 4 - R Square
Variables R square Adjusted R square
Perception 0.534 0.520
Purchase Decision 0.405 0.384
The R-square statistical measure illustrates the amount of variation in endogenous variables that can be explained by exogenous variables. In Table 4, the diversity of perception variables (Y1) of 53.4% can be explained by the diversity of socio-economic variables (X1), Personal (X2), Product (X3), Price (X4), Location (X5), and Promotion (X6) and the remaining 46.6% is influenced by other factors not examined in this study. The diversity of purchasing decision variables (Y2) of 40.5% can be explained by the diversity of socioeconomic variables (X1), Personal (X2), Product (X3), Price (X4), Location (X5), and Promotion (X6) and the remaining 59.5% is influenced by other factors not examined in this study.
After assessing the inner model, the next thing is to evaluate the relationship between latent constructs as hypothesized in this study. Hypothesis testing in this study was carried out by looking at t-statistics and P-values. The hypothesis is declared accepted if the t-statistics value >1.96 and P-values <0.05.
Table 5 - The results of testing the direct effect hypothesis
Path coefficient Original sample (O) Sample mean (M) Standard deviation (STDV) t- statistic (1O/STDEV1 ) P-value
Socio-economic -> Perception -0.10 -0.11 0.05 2.22 0.03
Socio-economic -> Purchase Decision -0.16 -0.15 0.06 2.61 0.01
Personal -> Perception 0.33 0.33 0.07 4.69 0.00
Personal -> Purchase Decision 0.05 0.05 0.06 0.74 0.46
Product -> Perception -0.08 -0.08 0.05 3.72 0.00
Product -> Purchase Decision 0.01 0.01 0.05 2.19 0.00
Price -> Perception 0.48 0.49 0.07 7.19 0.00
Price -> Purchase Decision 0.26 0.26 0.10 2.63 0.01
Location -> Perception 0.04 0.04 0.08 0.49 0.62
Location -> Purchase Decision 0.06 0.07 0.08 0.76 0.44
Promotion -> Perception 0.23 0.23 0.08 3.04 0.00
Promotion -> Purchase Decision 0.05 0.03 0.09 0.49 0.62
Table 5 shows that socio-economic has a significant effect on consumer perceptions and on the decision to purchase fresh pork with a p-value <0.05. Socio-economics is closely related to income. The job owned by consumers affects the income of the consumers themselves, the better the job the better the income received. With a good level of income, it will be a consideration for consumers in the process of making purchasing decisions and consumption patterns so that it affects the purchasing power of fresh pork, the higher the income, the greater the opportunity for consumers to buy fresh pork of the quality they want. The results of the above study are in accordance with research conducted by Rahayu et al. (2018) showing that socio-economic factors have a positive and significant effect on purchasing decisions for broiler chickens.
Personal has a significant effect on consumer perceptions and on purchasing decisions with a p-value <0.05. Personal consumer perceptions still consider several things, including consumer health, the purchasing power of fresh pork products is adjusted to the income earned; consumers consider the fulfillment of animal protein can be fulfilled by consuming pork. The results of this study are supported by research conducted by Ida et al. (2019) consumer confidence in a product will encourage them to make decisions and choose the products they want to consume.
Meanwhile, personal on the decision to purchase fresh pork has no significant effect with a p-value >0.05. This shows that in determining consumer purchasing decisions, consumers pay attention to several things such as age which may have a negative impact on health, a lifestyle that prioritizes meeting needs without seeing the limits that consumers must realize so that they do not have a bad impact on consumers themselves. The results of research conducted by Purna and Selvi (2017) show that personal factors have no significant effect on purchasing decisions for chicken meat.
Products have a significant effect on consumer perceptions and on purchasing decisions for fresh pork with a p-value <0.05. A better consumer perception of the product can increase purchasing decisions for fresh pork products: the higher the value of product quality, the higher the customer's decision to make a purchase (Anggraini and Harwani, 2020). Consumers in choosing fresh pork products do not only look at the price, but also through the appearance of the products offered, whether they are attractive, clean and neat, which will create purchasing decisions on the product. For this reason, consumers believe that in addition to pork fulfilling the need for protein, the many nutrients in fresh pork are believed to be good for health, which makes consumers choose to buy fresh pork. The results of research conducted by Karunia et al. (2021) show that product factors have a significant effect on purchasing decisions for fresh beef and processed products.
Price has a significant effect on consumer perceptions and on purchasing decisions for fresh pork with a p-value <0.05. Consumer perception of price is something that consumers pay attention to when making a purchase. Some consumers even identify price with value: if a product requires consumers to pay more than the benefits received, then what happens is that the product has a negative value. Prices will really be scrutinized by consumers by adjusting the income earned, because the price of fresh pork is not affordable for all groups. Consumer decisions in making purchases can be influenced by the price variable, even
though the price of fresh pork is quite expensive, respondents consider the product purchased to be in accordance with the quality offered and the perceived benefits are greater or equal to what has been spent to get it. The results of the study are supported by research conducted by Shari (2015) which suggests that price significantly influences consumer decisions in purchasing eggs.
Location has no significant effect on consumer perceptions and on purchasing decisions for fresh pork with a p-value> 0.05. Consumer perceptions of place do not have a significant effect on purchasing decisions for fresh pork products because consumers buy fresh pork without considering the location where they buy it. Consumers believe that fresh pork products will have the same quality even though they are sold in different places. The results of this study are supported by research conducted by Ridho (2016) which shows that consumer perceptions of beef sales location indicators are not good. Consumers consider location not to be a major factor in purchasing fresh pork with increasingly sophisticated technology in this modern era, social media is an intermediary that is often used by consumers because it can be accessed anywhere and is more practical because there is no need for consumers to go to the sales place but with social media purchases made can be delivered directly to consumers' homes. The results of research conducted by Ega and Liska (2021) show that the location factor has no significant effect on purchasing decisions for fresh beef.
Promotion has a significant effect on consumer perception with a p-value <0.05. In the modern era, social media has become a leading platform for disseminating information. Consumers get information faster through social media because it can be accessed anytime and anywhere. The spread of information through family or friends about fresh pork products indirectly not only likes it, but also often talks about the product to others, this is also part of promotion or better known as word of mouth, this method has existed since time immemorial. The results of the study are supported by this research in accordance with research conducted by Wawan and Ari (2020) which shows that consumer perceptions of fresh beef purchasing decisions at Warung Makan Sehat with promotional indicators are very good.
Meanwhile, promotion has no significant effect on purchasing decisions for fresh pork with a p-value> 0.05. The promotion carried out by fresh pork traders is the personal selling method. Apart from making purchases directly at the fresh pork sales point, social media is also a place where consumers get information about fresh pork sales such as social media, but even so, even though getting a lot of information through social media does not directly make consumers make purchases at that time, according to consumers, they absorb the information so that when consumers want to buy fresh pork, consumers already know the location of fresh pork sales according to what consumers want.
Table 6 - Indirect hypothesis testing results
Specific Indirect Effect Standard deviation (STDV) t-statistic (10/STDE V1) P-value
Socio-economic -> Perception -> Purchase Decision 0.02 2.84 0.00
Personal -> Perception -> Purchase Decision 0.05 2.76 0.01
Product -> Perception -> Purchase Decision 0.02 3.55 0.00
Price -> Perception -> Purchase Decision 0.06 3.37 0.00
Location -> Perception -> Purchase Decision 0.04 0.44 0.66
Promotion -> Perception -> Purchase Decision 0.04 2.58 0.01
In Table 6, it is known that socio-economic has a significant effect on purchasing decisions through consumer perceptions with a p-value <0.05. Socio-economics is closely related to level of education, income and employment. The higher the level of education of a person will form a good paradigm in consumers regarding fresh pork. Consumer profile of 55% of consumers have S1 education with good education can form a good mindset also before buying fresh pork consumers have sought information in advance about the good and bad effects on fresh pork. This helps consumers in deciding to buy fresh pork.
The jobs owned by consumers greatly affect income in Table 1 based on occupation, 71% of consumers have jobs as civil servants/soldier/police, the better the job the consumer has, the more it will affect income in Table 1.43% of consumers with income >Rp4,000,000.
The income owned by consumers is quite high so that consumers consider the fulfillment of animal protein to be fulfilled with a good income, which will make it easier for consumers to make decisions on purchasing fresh pork.
Personal factors have a significant effect on purchasing decisions through consumer perceptions with a p-value <0.05. Consumers who buy fresh pork are dominated by the age group 30-40 years, and age >40 years. This age is classified as an adult where the mindset is more mature, especially in choosing the type of food to be purchased. Based on the results of interviews conducted at this age, there are still many consumers who consume fresh pork. But still pay attention to health by consuming pork on a non-routine basis so as not to interfere with health.
Product factors have a significant effect on purchasing decisions through consumer perceptions with a p-value <0.02. Positive perceptions of a product will strengthen attitudes and will ultimately influence consumer intention to buy. Positive perceptions are due to consumers having a good assessment of fresh pork products, consumers are aware and feel the benefits of knowing the good nutritional sources contained in pork. From this assessment, consumers feel that fresh pork has a quality that matches consumer expectations and desires in meeting protein needs. Consumers who have a positive perception of the product have a high level of purchase intention. Conversely, consumers who have a negative perception of the product have a low level of purchase intention.
The price factor has a significant effect on purchasing decisions through consumer perceptions with a p-value <0.05. Price is one of the important attributes evaluated by consumers so that it can influence consumer attitudes. In other words, at a certain price level that has been spent, consumers can feel the benefits of the product they have purchased. Consumers will feel satisfied if the benefits they get are comparable or even higher than the nominal money they spend.
The location factor has no significant effect on purchasing decisions through consumer perceptions with a p-value >0.05. Consumer perceptions of location have been formed in consumers for a long time, because in consuming or buying pork it is inherent in the daily lives of consumers so that consumer perceptions of place have no effect on purchasing decisions for fresh pork products because consumers buy fresh pork without considering the location where they buy.
Consumers believe that fresh pork products will have the same quality even though they are sold in different places, so location does not affect consumer perceptions. In addition, the use of technological media also affects consumer purchasing patterns. Consumers can use social media as a purchasing tool, in addition to making it easier for consumers to buy purchases through technological media, it also does not take time for consumers because consumers do not need to make purchases of fresh pork at the point of sale and in making payments can use a variety of payment methods not always in cash. The existence of various promotions regarding the sale of pork on various social media platforms makes it easier for consumers to purchase fresh pork because consumers do not need to purchase fresh pork at places where fresh pork is sold.
Promotional factors have a significant effect on purchasing decisions through consumer perceptions with a p-value <0.05. Marketing communication is the dissemination of marketing information to try to influence, persuade and remind the target market and its products to be willing to accept and be loyal to the products offered. Consumers know the location of sales or fresh pork products through social media because it is faster to spread information and other advantages can be accessed anytime and anywhere, but not only through social media consumers also find out information both from family, friends and word of mouth, and many locations of fresh pork sales on the side of the road so that they are easily seen by consumers. There is also a good impact of disseminating information through social media or word of mouth where promotions are made to consumers to find out about sales locations or about fresh pork products, sellers do not need to spend more on promotion.
In addition to word of mouth, the way of promotion carried out by fresh pork traders is the personal selling method, where the seller directly promotes with the consumers he
meets. Consumers feel more effective because there is interaction between fresh pork sellers and buyers, namely consumers. The bargaining process also occurs at that time, the majority of consumers already have a subscription place to buy fresh pork so that consumers are more interested in directly purchasing fresh pork on the spot without waiting for promotions about products through advertisements, social media, brochures etc.
CONCLUSION
Socio-economic, personal, product, price, and promotional factors have a significant effect on consumer perceptions, while the location factor has an insignificant effect on consumer perceptions. Socio-economic factors, products, prices, and consumer perceptions have a significant effect on purchasing decisions for fresh pork in Kupang City, while personal factors, location, and promotion have an insignificant effect on purchasing decisions for fresh pork in Kupang City. Socio-economic, personal, product, price, and promotion factors have a significant effect in determining purchasing decisions for fresh pork in Kupang City through consumer perceptions, while the location factor has an insignificant effect in determining purchasing decisions for fresh pork in Kupang City through consumer perceptions.
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