The Role of Product Differentiation and Word of Mouth on Purchase Decision of Creative Industrial Products

Abstract

This study aims to analyse the effect of word of mouth and product differentiation on purchasing decisions for creative industry handicraft products at the waste bank in Semarang City. The research population is a waste bank in Semarang City that produces and sells handicraft products. The sampling technique used purposive sampling, obtained as many as 33 respondents. This study used multiple linear regression analysis with SPSS tools. The results showed that word of mouth and product differentiation had a positive and significant effect on purchasing decisions for creative industry handicraft products. Local governments and the public are expected to pay more attention to and help promote and develop creative industries produced by waste banks.

University’s Image Moderates the Influence of Location and Word of Mouth Marketing on the Decision to Chose a College

“…These results strengthen the theory of planned behavior where a student, before choosing a place to study, first plans by considering the location of the university, word of mouth marketing and the image of the university. The results of this study are in line with research (Chua et al, 2020); (Gosal et al, 2020); (Guerreiro and Pacheco, 2021); (Hikmah et al, 2022); (Ismagilova et al, 2020); (Prasad et al, 2019); (Sulthana and Vasantha, 2019); (Wiratama et al, 2022) who stated that word of mouth marketing had a positive influence on the decision to choose a university.…”

“…The decision to choose a college by students is related to the location of the college, word of mouth marketing and the image of the college. Several studies state that the location of a university influences a student's decision to choose a university to study at (Adhiansyah and Rizkyanfi, 2020); (Cynthia, Hermawan and Izzuddin, 2022); (Kelvinia et al, 2021); (Nuseir and El Refae, 2022); (Rachmawati et al, 2019); (Kao and Shimizu, 2020); (Sundari et al, 2021), other research also states that word of mouth marketing influences students' decisions in choosing a university (Chua et al, 2020); (Gosal et al, 2020); (Guerreiro and Pacheco, 2021); (Hikmah et al, 2022); (Ismagilova et al, 2020); (Prasad et al, 2019); (Sulthana and Vasantha, 2019); (Wiratama et al, 2022). Several studies state that location does not influence a student's decision to choose a university (Bachtiar and Purwanto, 2021); (Harahap et al, 2020), several studies also state that word of mouth marketing has no influence on students' decisions in choosing a university (Khanafi, 2021); (Slamet, Prasetyo and Azmala, 2022); (Suharyanto and Rahman, 2022).…”

The Ability of Brand Trust as a Mediator on the Determinants of Customer Loyalty: Study on Mie Sagu Waraka (SAWA) in Ambon, Indonesia

“…The superiority of a unique product image compared to other competitors makes it attractive for consumers to buy the noodle product and even without hesitation to repurchase the product as a form of consumer satisfaction. Hypothesis This is supported by research conducted (Gandhy, 2018;Hikmah et al, 2022).…”

“…Purchasing decisions can also be influenced by product differentiation because it is a strategy that makes products different from competitors and even exceeds them so that the results can be assessed by consumers and the expected value can influence consumer choice and satisfaction (Tableessy, et al, 2023), where When consumers feel that the product provided is very different from others, consumers will choose to make a purchase. This explanation also states the relationship between product differentiation and purchasing decisions which is emphasized by (Hikmah et al, 2022), namely that product differentiation has a positive and significant effect on purchasing decisions for creative industrial craft products in Semarang. In agreement with that, (Gandhy, 2018)…”

“…The variables in this research consist of several indicators which are described through statement items using a questionnaire based on previous research and have been adapted to the objects in this research. These variables are brand image consisting of 3 statements quoted from (Kim, 2019), product differentiation variable consisting of 3 statements quoted from (Hikmah et al, 2022), brand trust variable consisting of 3 statement items quoted from (Drennan et al, 2015), the purchasing decision variable consists of 5 statements quoted from (Hanaysha, 2018), and the customer loyalty variable consists of 3 statements quoted from (Chen et al, 2019). The five variables in this study were measured using a 1-5 Likert scale, starting from 1 = "strongly disagree" to 5 = "strongly agree".…”