The Effect of Pricing and Promotion on Purchase Decisions at PT Java Indo Arjuna, Singosari District, Malang Regency

Abstract

Abstract—Pricing and promotion, if properly applied by a company, can increase the company's sales. The purpose of the study was to determine the effect of pricing and promotion on purchase decision in PT. Java Indo Arjuna, Singosari District, Malang Regency. This quantitative study used pricing (X1) and promotion (X2) as the independent variables, and purchase decision (Y) as the dependent variable. There were 100 respondents selected through purposive sampling. The data analysis technique used was multiple linear regression, coefficient determination and hypothesis testing. This showed showed that: 1)Pricing partially had a positive and significant effect on the purchase decision, with the calculated t-statistic (2.496) greater than t-table (1.66071) and the significance value being 0.014, smaller than 0.05; 2) Promotion partially had a positive and significant effect on the purchase decision, with the calculated t-statistic 2.164 greater than t-table 1.66071, and the significance value was 0.014, smaller  than 0.05; 3) Pricing and promotion simultaneously had positive and significant effects on purchase decision with F-statistic 11.614) greater than F-table (3.09) and significant count was 0.000, smaller than 0.05. The adjusted result of pricing and promotion was 61%. A regression equation was Y= 18.223+0.477+0.611+e. Based on the results, the conclusion is that pricing and promotion partially and simultaneously affect the purchase decision.