DETERMINATS OF CUSTOMER PURCHASING DECISION: PRICE, PRODUCT, AND LOCATION

Purpose: The purpose of this study is to analyze the effect of price, product and location on customer home purchasing decision on PT. Putra Bumi Airlangga both partially and simultaneously. Design/methodology/approach: The population in this study are all customers from PT. Putra Bumi Erlangga as many as 95 customers and sample of this study used a number of respondents who were selected by total sample or census, namely from 95 customers of PT. Putra Bumi Airlangga were selected as samples. The data analysis technique used was multiple regression analysis. Findings: The research results are: 1) Price affects customer purchasing decision of PT. Putra Bumi Airlangga, 2) Product affects customer purchasing decision of PT. Putra Bumi Airlangga, 3) Location affects customer purchasing decision of PT. Putra Bumi Airlangga, 4) Price, product and location simultaneously affect customer purchasing decision of PT. Putra Bumi Airlangga, 5) Price has the most dominant effect on customer purchasing decisions of PT. Putra Bumi Airlangga

distribution means that the product is sold to the end user by means of an intermediary such as a wholesale or retail business (Cannon and McCarthy, 2009) and all communication of a company that is aimed at stimulating sales comes under promotion (Cannon and McCarthy, 2009). Kotler & Keller (2014) define price as the amount of money that is billed for a product or service. Price is considered as the amount of value exchanged by consumers for the benefits of owning or using a product or service. Price is one of the principles of the marketing mix which is one of the determining factors in product purchases in addition to other factors. Price becomes more important for consumers as a sign of what is expected. Consumers often assume that price is an indicator of quality and companies can reduce product quality to minimize costs, so higher price is a sign of better quality (Santoso, 2016). Price is a number of values that are exchanged by customers who benefit from owning or using a product or service whose value is determined by buyers and sellers through bargaining or set by the seller for the same price to all buyers. Price is considered as one monetary or other measure exchanged in order to obtain ownership rights or use of an item or service (Noto and Hakim, 2016). Price is considered as the basic regulator in the economic system, because prices affect the allocation of production factors such as labor, land, capital and entrepreneurship. Price is determining the value of goods money and the price of goods. With the existence of a price, the community can sell an item that is owned at a public price and can be accepted. Price is an exchange rate that can be equated with money or other goods for benefits obtained from an item or service for a person or group at a certain time and place. Price is considered as a number of values (in currencies) that consumers must pay to buy and enjoy the goods or services offered. Price is also important because it will be a benchmark for consumers to buy products and at the same time to determine how much profit is obtained in trading (Tjiptono, 2014).

B.Price
In the business world, price is one of the key factors. Therefore pricing decisions must be made repeatedly because the selling price is affected by changes in the external and internal environment. Price is the only marketing mix that generates income and is also one of the most flexible marketing mixes, prices can change rapidly, unlike products or distribution channels. Whereas the purpose of pricing is according to Kotler & Keller (2013), namely survival, maximum current profit, maximum current income, maximum sales growth, product quality leadership and other pricing objectives.

a.Pricing
In practice, there are five pricing in the market, include (Setiadi, 2010): 1. Price positioning The price of a product is determined to be the same, lower or higher than the competitor's price, depending on whether or not there are attributes desired by consumers on certain products. To determine the value of these attributes, companies can conduct market research on the prices of products from the lowest to higher, so that the market demand curve can be made. In general, companies try to get the price of their products in a price range that shows the position in the quality range. Quality here means that there are attributes desired by consumers.

Product line pricing strategy
This strategy is carried out if the company produces and sells more than one product, both substitute and complementary. In this case, the company will be faced with the problem of how to determine its markup for each product line. When producing and selling complementary products, it must be determined how the basic item markup and how its complementary markup. Likewise, when producing and selling substituted products, the company must determine its markup.

Pricing to predict quality
Often consumers judge that if a product has a high price, then the quality of the product is also high. Price is an indicator of quality for three reasons, namely: a. There is no other information about products other than prices b. If the cost of knowing the quality of a product is higher than the value of consumer understanding of product quality. c. The veblen effect, namely the tendency of consumers to buy products if the price is high because of the effects of demonstrations such as those purchased by others.

Determination of package prices
Product package is to sell two or more products together in one package with one price. This package theory explains why companies offer products in a number of different sizes and why consumers buy smaller sizes that buy large sizes. And why one buys a large amount in another. This is because in package sales companies often apply price discounts based on the quantity purchased.

Promotional pricing
This promotion price is often known as "dealing", which includes offering temporary discounts by placing "on sale" products in a certain period. Pricing of this promotion is carried out for several reasons, including: a. To reduce storage costs because of the large amount of inventory. b. There are price discounts from suppliers in order to increase market share. c. Manufacturing owners want to expand the distribution network so that they offer discounts to retailers. d. Companies reduce temporary prices to avoid losing market share, because other companies reduce prices or conduct large-scale advertising campaigns. e. Often discounted prices for certain products can attract buyers to the store and are expected to also buy products that are not subject to price discounts. f. Is part of a promotional strategy so that consumers are aware of its existence.
However, the pricing of this promotion has weaknesses, including: a. Sales requests and product profits may fall if the demand is inelastic. b. The buyer only buys when the price drops. c. Increase consumer awareness of prices. d. Damaging the quality image of a product

b.Factors Affecting Prices
According to Kotler & Keller (2013) there are several factors that influence prices, namely: 1. Demand curve The curve shows the level of market purchases at various prices. The curve sums up the reactions of various individuals with diverse market sensitivities. The first step in estimating demand is to understand the factors that influence buyer price.

Costs
Cost is an important factor in determining the minimum price that must be set so that the company does not experience losses. The company wants to set a price that can cover the costs of producing, distributing and selling its products, including adequate returns on the business and the risks 3. Customers Customer demand is based on several interrelated factors and it is often difficult to accurately estimate the relationships between factors.

c.Price Measurement
Prices can be measured by several things, including (Wardani, Paramita and Minarsih, 2016): 1. Prices offered vary 2. Price affordability 3. Prices of competing products 4. Prices are in accordance with the benefits 5. Prices are in accordance with quality

d.Pricing Objectives
According to Kotler & Keller (2013) there are five main goals in setting prices: 1. Ability to survive Companies pursue the ability to survive as their main goal if they experience overcapacity, fierce competition, or changing consumer desires. As long as prices cover variable costs and fixed costs, the company stays in business.

Maximum current profit
Many companies try to set prices that will maximize current profits. Companies estimate demand and costs associated with alternative prices and choose prices that produce current profits, cash flow, or maximum return on investment.

Maximum Market Share
The company believes that the higher the sales volume, the lower unit costs and the higher long-term profits. The company sets the lowest price assuming the market is price sensitive.

Market Skiming Pricing
The company revealed new technologies that set high prices to maximize market flush where prices were initially set high and slowly dropped over time. Skiming Pricing is used in the following conditions: a. There are quite a lot of buyers whose current demand is high.
Page │ 449 b. The unit cost of producing small volumes is not so high that it eliminates profits from imposing the maximum price that the market can absorb. c. High initial prices attract more market competitors. d. High prices communicate superior product images. 5. Product quality leadership 6. Many brands strive to be the affordable luxury of products or services that are determined by their character by a high level of quality, taste and status at a price that is high enough to not be beyond the reach of consumers.

e.Pricing Method
Setting the price level, marketers can use one or a combination of various price calculations. According to Kotler, Philip, & Armstrong (2012) states, there are six pricing methods, including the following: 1. Markup Pricing 2. The most basic pricing method is to add standard markups to product costs. Until now markup pricing is still popular because sellers can determine costs much more easily than estimating demand, then prices tend to be the same and minimized price competition when companies in the industry use this method, and finally many people feel that cost plus pricing is more fair for buyers and seller. 3. Determining the price of the target purchase level The company determines the price that will produce a return on the target investment.

Pricing value of presumption
Values consist of several elements such as the buyer image of product performance, channel delivery capabilities, quality assurance, customer support, and less dominant attributes such as supplier reputation, trust and self-esteem.

Value setting
Methods that create low prices for consumers to attract consumers' attention by not ignoring the quality of the company's products. 6. Determining going-rate prices The company bases most of its price on competitor prices, charges the same price, is more expensive or cheaper than the price of the main competitor. 7. Pricing of auction types Determination of the price of auction type is to dispose of more inventory or used goods.

C.Product
The definition of a product in the narrow sense is a set of tangible physical properties collected in a similar and known form. The definition of product in the broadest sense is a group of tangible and intangible properties which include color, price, packaging, factory prestige, retailer prestige and services provided by consumers and retailers that consumers can accept as satisfaction offered to consumers' wants or needs. Understanding products in general, namely everything that can influence and satisfy human needs or desires, both tangible and intangible (Tjiptono, 2014). Kotler et al. (2012) state that products are anything that can be offered to the market to be noticed, owned, used, or consumed that can satisfy desires and needs. Products include physical objects, services, people, places, organizations and ideas. Cravens (2001) explains that products are all things that have value in a target market where their ability to provide benefits and satisfaction including objects, services, organizations , place, people, ideas. Product is something that can be offered to the market to be owned, used and consumed so that it can satisfy the desires or needs.

a.Classification of product
Broadly speaking, products can be broken down into two namely consumption products and industrial products (Tohar, 2013). 1. Consumption products; i.e. goods that are used by end consumers or households with the intention not to be commercialized or sold again. 2. Industrial products; that is, items that will become so widely used in marketing development programs. a. Raw materials; namely goods that will become physical raw materials for producing other products. b. Factory raw materials and spare parts; namely industrial goods used for actual parts for other products. c. Operational supplies; namely daily necessities for the industrial sector. Products can also be classified based on their consumers and for what products are consumed. Based on these criteria, Tjiptono (2014) classifies products into:

Consumer goods
Consumer goods are goods consumed for the benefit of end consumers (individuals or households), and not for business purposes, consumer goods can be divided into four types, namely: a. Convenience Goods are goods that generally have a high purchase frequency (often purchased), are needed in a short time and require minimum effort in comparison and purchase. b. Shooping Goods are goods which are the process of selection and purchase, compared to consumers among various available alternatives. Comparative criteria include the price, quality, and model of each. Examples: household appliances, clothing, and cosmetics. c. Specialty goods are goods that have the characteristic or unique brand identification where a group of consumers is willing to make a special effort to buy it. Generally these types of goods consist of luxury items, with specific brands and models, such as famous jaguar cars and clothing designs. d. Unsought goods are goods that are not known by the consumer or even if it is known by consumers, consumers may not necessarily be interested in buying them. Examples: tombstones, encyclopedias, and burial grounds.

Industrial goods
Industrial goods are goods consumed by industrialists (intermediate consumers or business consumers). Industrial goods are used for purposes other than direct consumption, namely: to be processed into other goods or to be sold again. Industrial goods can be divided into three groups, namely: a. Material and parts are goods which are wholly or fully incorporated into the finished product. This group is divided into two classes, namely raw materials and finished materials and spare parts. b. Capital items, are long-lasting items that provide convenience in developing or managing finished products. c. Supplies and services, are goods that are not durable and services that provide convenience in developing or managing the entire finished product.

b.Product Level
According to Tjiptono (2014) in planning a product offering, marketers need to understand the five product levels, namely: 1. The main or core product, which is the actual benefit needed and will be consumed by the customer of each product. 2. Generic products, basic products that fulfill the most basic product functions / minimal product design can function. 3. Expected products, namely formal products offered with various attributes and conditions, are normally expected and agreed to be purchased. 4. Equipmented product, which is a variety of product attributes equipped with various benefits and services so that it can determine additional satisfaction and can be distinguished from foreign products.

c.Product Measurement
Here are some things that are used for product measurement (Tjiptono,

D.Location
Location is an area that makes products available to target customers. Location is the location of the store or retailer in a strategic area so that it can maximize profits. The selection of the right business location will determine the success of the business in the future (Senggetang, Mandey and Moniharapon, 2019). Location is also considered as the place where the company operates or where the company conducts activities to produce goods and services that are concerned with its economic aspects (Sastrawan, 2015). Location according to Tjiptono (2015) Location refers to various marketing activities that seek to facilitate and facilitate the delivery or distribution of goods and services from producers to consumers. Whereas according to Kotler et al. (2012) "place include company activities that make the product available to target consumers". Then according to Lupiyadi & Hamdani (2011) "location is a decision made by the company or educational institution relating to where the operations and staff will be placed". Opinion regarding the location of these experts, arrived at the author's understanding that location is a company decision to determine the place of business, carry out business activities or operational activities, and distribute goods or

A.Multiple Regression Analysis
Multiple linear test results can be seen in the coefficients table as follows:

B.The effect of price on customer purchasing decision
From the results in Table 1 above it can be seen that the acquisition of the value of t count of price is 2.544. Meanwhile, for t table with a significance level of 0.05, the value of t table = 1.985 is obtained. Comparison between the two produces: t count > t table (2.544 > 1.985 ). The significance value t for the competency variable is 0.014 and the value is smaller than the probability of 0.05 (0.014 < 0.05). So that this test shows that Ha is accepted and Ho is rejected. This means that there is an influence of price on customer purchasing decision of PT. Putra Bumi Airlangga.

C.The effect of product on customer purchasing decision
From the results in Table 1 above it can be seen that the acquisition of the value of t count of product is 2.256. Meanwhile, for t table with a significance level of 0.05, the value of t table = 1.985 is obtained. Comparison between the two produces: t count > t table (2.256 > 1.985). The significance value t for the competency variable is 0.028 and the value is smaller than the probability of 0.05 (0.028 < 0.05). So that this test shows that Ha is accepted and Ho is rejected. This means that there is an influence of product on customer purchasing decision of PT. Putra Bumi Airlangga.

D.The effect of location on customer purchasing decision
From the results in Table 1 above it can be seen that the acquisition of the value of t count of location is 19.997. Meanwhile, for t table with a significance level of 0.05, the value of t table = 1.985 is obtained. Comparison between the two produces: t count > t table (19.997 > 1.985 ). The significance value t for the competency variable is 0.000 and the value is smaller than the probability of 0.05 (0.000 < 0.05). So that this test shows that Ha is accepted and Ho is rejected. This means that there is an influence of location on customer purchasing decision of PT. Putra Bumi Airlangga.  ) is obtained by a value of 0,000, thus the significance value obtained is smaller than the probability α specified (0,000 < 0,05). So Ho is rejected and Ha is accepted. Then conclusions can be drawn, there is influence of price, product, and location on customer purchasing decision of PT. Putra Bumi Airlangga.

G.Among the variables of price, product, and location, which variable has the dominant influence on customer purchasing decision
Based on the output in table 1 above between price, product, and location. Variable having the dominant influence on customer purchasing decision is location variable. It is shown in the acquisition of 19.977 t count which is greater than t count of other independent variables, price and product. Thus location variable has a dominant influence on customer purchasing power of PT. Putra Bumi Airlangga. So Ha is rejected and Ho is accepted.

IV. CONCLUSION
Based on the results of the analysis and discussion previously stated, conclusions can be taken as follows: 1. There is an effect of price on customer purchasing decision of PT. Putra Bumi Airlangga. It can be proven from the comparison between the two yielding: t count > t table (2.544 > 1.985 ). Significance value t for price variable is 0.014 and the value is smaller than the probability of 0.05 (0.014 < 0.05). So H1 is accepted. 2. There is an effect of product on customer purchasing decision of PT. Putra Bumi Airlangga. It can be proven from the comparison between the two yielding: t count > t table (2.256 > 1.985). The significance value of t for the product variable is 0,028 and the value is smaller than the probability of 0.05 (0,000 < 0,05). So H2 is accepted. 3. There is an effect of locaition on customer purchasing decision of PT. Putra Bumi Airlangga. It can be proven from the comparison between the two yielding: t count > t table (19.977 > 1.985). The significance value of t for the location variable is 0.000 and the value is smaller than the probability of 0.05 (0.000 < 0.05). So H3 is accepted. 4. There is an effect of price, product, and location on customer purchasing decision of PT. Putra Bumi Airlangga. It can be proved from the results of the calculation of SPSS obtained F count of 722.304 This shows F count (722.304) > F table (2.70) and significance level of 0,000 < 0.05. The test results show that the significance value of the simultaneous test (F test) is obtained by a value of 0,000, thus the significance value obtained is smaller than the probability α specified (0,000 < 0,05). So H4 is accepted. 5. Among the variables of price, product and location, variable having the dominant effect on customer purchasing decision of PT. Putra Bumi Airlangga is location variable which has t cont 19.977 which is greater than t count of other independent variablesprice and product -. Thus location variable has a dominant influence on customer purchasing decision of PT. Putra Bumi Airlangga. So H5 is rejected.