INFLUENCE OF INTEREST, PRICE, PRODUCT QUALITY, PROMOTION, AND BRAND IMAGE ON PURCHASING DECISIONS IN TRAVELOKA APP

- This research was conducted to test and analyze the influence of interest, price, product quality, promotion, and brand image on purchasing decisions. The method used in this research was Structural Equation Modeling (SEM) using the SmartPLS application. The population in this study consisted of Traveloka application users with a total of 137 respondents. The study used purposive sampling with 104 respondents. The test results show that interest variable has a positive and significant effect toward purchasing decisions of Traveloka application users, while the price, product quality, promotion, and the variables of brand image have no significant effect toward users purchasing decisions of Traveloka application.


INTRODUCTION 1.1 Research Background
The tourism industry in Indonesia is one of the economic driving sectors that is quite a concern because with the diversity of cultures and languages in the country, Indonesia is a magnet for local and international tourists to recognize the diversity and also encourage directly the development of startup applications that facilitate these developments.
Internet users who continue to grow in number are one of the value factors on the development of information channeled to the public and the contribution of several information channels into one medium through the internet. In addition, Based on the results of the Indonesian Polling study in collaboration with the Indonesian Internet Service Providers Association (APJII), the number of internet users in Indonesia grew 10.12 percent therefore the increase of the number of internet users attests to the fact that the internet is not only used as a communication tool, but also supports buying and selling activities (Kompas.com, 2019).
With the increase of internet users, businesses are also utilizing the internet as a marketing medium for their products. The development of the internet also indirectly changed aspects of life including consumer behavior. This includes changes in obtaining information and the need to make decisions in a fast way without limitation of place and time to buy and consume products. Moreover, consumer behavior tends to prefer everything that is practical and easily obtained by conducting online transactions. Kotler and Keller (2007), in Sari, et. al (2014), stated that promotion is a collection of incentive tools, mostly short-term, designed to stimulate the purchase of certain products or services more quickly by consumers or traders.

Brand image
Kotler and Keller (200), in Kurniawati, et. al (2014), defined brand image as perceptions and beliefs held by consumers, as reflected in the associations embedded in consumers' memories, which are always remembered for the first time when they hear slogans about the product or service.

2.
RESEARCH METHODOLOGY This research used descriptive and verification research types. The data collection method in this study was survey with a questionnaire instrument. The analysis technique used was SEM or Structural Equation Modeling. This research was conducted on consumers who purchased the travel tickets in Traveloka Platform in meeting their traveling needs with a sample of 104 respondents.

Definition of Variable
Below is the operational definition for each variable used in the study

Information
Easy information Information about the products offered in Traveloka services is easily obtained. Advertising Use of attractive advertisements on products Traveloka information advertisements carried out through television, websites or social media make me interested in the products offered. The ability of advertising to reach the target market Promotion carried out through television and YouTube by publishing the products offered makes me interested in using the products offered.
Promotion (Dianah and Welsa (2017)  Based on the Outer Loading Factor results above, there are several indicators that have a loading factor value of less than 0.6 and are not significant.  In general, the value of composite reliability that can be used is at least 0.6 or more with Cronbach's alpha scores above 0.7. It can be concluded that the instrument used in this study is statistically reliable.

Testing results (Inner Model)
Testing the inner model or structural model is done to see the relationship between the construct, significance value, and R-square of the research model.
The structural model is evaluated using R-square for the dependent construct of the t-test as well as the significance of the coefficient of structural path parameters.   Table 5 shows the R-square value for the purchase decision variable which obtained a value of 0.682 or 68.2% which means that the purchase decision variable can be influenced by the independent variable.

Hypothesis test
The basis used in testing the hypothesis is the value contained in the output result for inner weight.

Hypothesis 1 Testing (Influence of Interest on Purchasing Decisions)
The results of the first hypothesis testing able to show the relationship of interest to the purchase decision as presented in Table 11 showing the original value (O) which is a path coefficient of 0.598 with a statistical T value of 6.226. This value is greater than the value of ttable (1,960). So it can be interpreted that Purchasing interest has a positive and significant influence on purchasing decisions.

Hypothesis 2 Testing (Effect of Prices on Purchasing Decisions)
The results of the second hypothesis testing show the relationship of prices to purchasing decisions as presented in Table 11 showing the original value (O) which is a path coefficient of 0.024 with a statistical t value of 0.170. This value is smaller than the t table value (1,960). So it can be interpreted that the price does not significantly influence the purchase decision.

Hypothesis 3 Testing (Effect of Product Quality on Purchasing Decisions)
The results of the third hypothesis testing show the relationship on product quality to purchasing decisions as presented in Table 11 showing the original value (O) which is a path coefficient of 0.158 with a statistical t value of 1.399. This value is smaller than the t table value (1,960). So the values show product quality does not significantly influence purchasing decisions.

Hypothesis 4 Testing (Effect of Promotion on Purchasing Decisions)
The fourth hypothesis testing results show the relationship of promotion to purchase decisions as presented in Table 11 showing the original value (O) which is a path coefficient of 0.078 with a statistical t value of 0.993. This value is smaller than the t table value (1,960). offered is affordable and in accordance with the quality of the product so that it can hit the hearts of consumers. Prices cannot be used as a benchmark for consumers in making purchasing decisions, and some of the reasons are because the price offered does not match the perceived benefits, the price of the product is not affordable, and the price does not match the quality offered.
List of consumer choices for purchasing airline ticket applications at affordable prices: (TravelsPromo, 2019

Effect of Product Quality on Purchasing Decisions
Based on the results of the hypothesis test and the discussion of the data that has been carried out, it was discovered that the quality of the product has no significant effect on purchasing decisions. The quality of a product is important and the main thing for consumers who will make a purchase decision for a product. If the quality of the product is low, consumers will be hesitant to buy the product. Besides that, other causes underlying why consumers are reluctant to make a purchase decision can be due to the additional functions contained in the Traveloka application which do not all support the traveling needs of consumers, and can cause damage (error) related to the mobile app or the product ordered by the consumer.
Based on the data from Similarweb (2020), the comparison of Traveloka applications with similar applications on Top Google Play Apps in Indonesia, Travel and Local, Top Free, is as follows: • Traveloka: Being in order number 2 • Tiket.com: Being in sequence number 3

.4 Effect of Promotion on Purchasing Decisions
Based on the results of the hypothesis test and the discussion of the data that has been done, it was discovered that promotion does not have a significant effect on purchasing decisions. Promotion will affect purchasing decisions if the promotion is able to provide and attention of consumers, and do not make consumers tempted to buy products offered on the Traveloka application. 5. Brand image has no significant effect on purchasing decisions in the Traveloka application. Not all consumers make purchasing decisions based on recognition or knowledge of a brand image that is already known or is being talked about, because some consumers usually make a purchase decision based on several things such as quality, price or will from within themselves.