Key Determinants of Purchase Decison : A Case Study of Poeniko Batik Store in Pekalongan

Business competition that is getting stonger makes SME (Small Medium Enterprise) must be able to compete. Batik is one of SME that has influence in economic growth. The enterpreneurs have to compete with competitiors. This study aims to examine the influence of media sosial, electronic word of mouth, and brand image on purchase decision through purchase intention at Poeniko Batik Pekalongan store. The population in this study is consumers of Poeniko Batik Pekalongan. The number of samples used in this study were 100 people using the incidental sampling method. The data collection method uses documentation and questionnaires. The results showed that the electronic word of mouth, brand image and purchase variables had a positive and significant effect on purchasing decisions. While social media variables do not have a positive and significant effect on purchasing decisions. The results of the path analysis test indicate that purchase intention can mediate the influence of social media, electronic word of mouth, and brand image on purchasing decisions. Article Information Article History: Received April 2020 Approved May 2020 Published September 2020


INTRODUCTION
Market competition that occurred in recent years requires multinational companies to spread to the global market. As a developing country, Indonesia has various aspects in developing the economy. Small and Medium Industries (SME) have a very important role and contribute greatly to the economic growth sector. The fashion sector is one of the factors of small and medium industries that play a role in economic growth.
A company if wants to grow, the company must understand consumer buying behavior (Sumarwan, 2014). Consumer behavior includes decision making process and consumer activities in evaluating, obtaining the use or obtaining goods and services (Suryani, 2008).
The output of an evaluation might generate purchase intention (Belch, 2012). In marketing science, when consumer has not purchasing decision, then the approach to the behavior is purcha-se intention (Simamora, 2004).
Buy interest is the desire to get a product or service that is in the minds of consumers in the long and short term (Sa'ait et al., 2016). According to Wee et al. (2014) consumers will make greater actual purchases when they have an interest in buying a product.
One factor that can influence purchasing decisions is social media. Social media is a forum on the internet that allows users to present themselves and interact, work together, share, and communicate with other users to form virtual social ties (Nasrullah, 2015).
Customer who shares information or experiences after using a product to other consumers is called word of mouth. The development of searching through the internet makes it easier for consumers to obtain knowledge about the product before trying or using the product. This can provide a strong reason for potential consumers to be interested or not using a product. According to Sa'ait et al. (2016) before making a purchase decision, potential customers will see other consumer reviews rather than relying on advertisements. Furthermore, consumers get the trust and perception of a product from E-WoM.
Other factor that companies need to consider to create purchasing decisions is brand image. According to Kotler (2007) Brand Image is the perception and belief carried out by consumers as reflected in the associations that occur in consumer memory. A good brand image will produce a variety of benefits such as greater profits, minimal risks, can also affect consumer purchasing decisions that increase.
To improve purchase decisions, Poeniko Batik has made several efforts. These efforts include using social media as an online sales media, establishing communication with consumers on social media and also building relationships with consumers by providing good service to consumers.
Increased intense competition makes Poeniko Batik having difficulty developing market share and adding new consumers. This can be seen from the phenomena that occur in the field that show Poeniko Batik sales results have increased and decreased fluctuations tend to decrease as sales data for 2015-2018 below: Hypothesis Development Consumer Behavior According to Mowen and Minor (2002) consumer behavior is defined as a study of the purchasing unit and the exchange process that involves the acquisition, consumption, and disposal of goods, services, experiences and ideas. Consumer behavior is the activities of individuals who are directly involved in obtaining and using goods and services, including the decision making process in the preparation and determination of these activities (Swastha & Handoko, 2000).

Purchase Decision
The purchase decision is an individual activity that is directly involved in the decision-making process to make purchases of products or services offered by the seller (Nulufi & Murwatiningsih, 2015). The consumer decides to make a purchase begins with an unsatisfied need, then consumers search for a variety of information about a product or service services from several alternatives and the customers will evaluate the product from some alternatives (Agustina & Yulianto, 2020). Furthermore, the integration process will result in a choice to buy or not as a desire to behave cognitively. If consumers do not have alternative choices, then it cannot be said that consumers are making decisions (Sumarwan, 2014). Kotler and Keller (2006) revealed, things that are considered by consumers in making decisions to buy products as follows: Product choices, consumers must make decisions in determining what products to buy. Choices of suppliers, consumers must make decisions about which suppliers to visit, each consumer is different in terms of determining the supplier, it can be due to the location factor that is close, cheap prices, complete inventory, shopping convenience, freedom of space, etc. The choice of brand, consumers must make decisions in determining what brand to buy. Choice of time, consumers can make decisions about when he should make a purchase. The number of purchases, consumers can make decisions about how many products to buy at a time, so the company must prepare the number of products. Choice of method / method of payment, consumers can make decisions about the method / method of payment.

Social Media
According to Widyatama (2009), social media is information exposure which on a social media, is able to encourage symbolic awareness then this awareness raises consumptive awareness, and consumptive awareness leads consumers to actual awareness or behavior. Social media is a forum on the internet that allows users to present themselves and interact, work together, share, and communicate with other users to form virtual social ties (Nasrullah, 2015).
Social media indicators according to Ekasari (2014) are as follows: 1. Relationship producers to build relationships with consumers through existing social media so they can be closer to consumers.
2. Communication is the interaction that occurs between the seller and the consumer through existing social media. 3. Post-Purchase Interaction is an interaction that occurs with consumers after consumers buy products. 4. Information format that is able to convey information in full and can attract the attention of consumers.

Electronic Word of Mouth
According to Hennig-Thurau et al. (2004), Electronic Word of Mouth or abbreviated as EWoM is all positive or negative statements about a product or company made by potential customers, consumers and former customers that can be accessed by everyone via the internet. Electronic Word of Mouth is a change from Word of Mouth, where traditional interpersonal communication is changed to cyberspace communication (Semuel & Lianto, 2014).
Jeong and Jang (2011) states that Electronic Word of Mouth is positively reflected through three indicators, namely: 1. Concern for others (the desire to provide recommendations to other consumers) 2. Expressing positive feelings (the desire to express positive feelings) 3. Helping the company (the desire to help the company).

Brand Image
According to Keller (2000) brand image is the consumer's perception of the brand image of the product to be consumed or used. According to Alfian (2012) A brand needs an image to communicate to the audience in this case the target market about the values contained therein.
According Keller (2008), measurement of brand image can be done based on aspects of a brand, namely: 1. Strength Strengths in this case are the advantages possessed by physical brands that are not found in other brands.

Uniqueness
Uniqueness is the ability to distinguish a brand among other brands.

Favorable (Favorable)
To choose which ones are preferred and unique related to the brand of passions (favorable) leads to the ability of the brand to be easily remembered by consumers.

Purchase intention
Interest is one of the psychological aspects that has a considerable influence on the behavior of Schiffman and Kanuk, (2008). Consumer purchase intention is a consumer behavior where consumers have the desire to buy or choose a product, based on experience in choosing, using and consuming or even wanting a product (Kotler, 2003).
According to Ferdinand (2014) variable Buy Interest can be measured by 3 indicators, namely: 1. The intensity of information search, namely how often consumers look for information about a product. 2. The desire to buy immediately, namely the sacrifice made by consumers to immediately get a product. 3. Preferential desires, ie consumers ignore other choices just to have a product.
Social media is now one of the most widely used tools by marketers in disseminating information about a product to consumers. This social media network is a new form of dialogue between "consumer-to-consumer" and "business-to-consumer" which has major implications for marketers. (Kotler & Armstrong, 2012). Research conducted by Nurgiyantoro (2014) states that promotion through social media has a positive and significant effect on consumer purchasing decisions and purchasing decisions are influenced by promotion strategies through social media. But on the contrary in the research of Victor A. Schultz, (2016) stated that social media has no significant effect on purchasing decisions.
In this developing modern era, social media is not only used as a communication media, but also as a promotional media because it offers many advantages (Rahadi & Abdillah, 2013). Siswanto (2013) said that social media is the most effective media to be used as promotional media, even social media is also used as an interactive marketing tool, service, and building relationships with customers and prospective customers. Jurnia and Rosyad (2015) examined the relationship between social media and purchase intention, and the results showed that there was a significant positive relationship between social media and consumer purchase intention. However, another study conducted by Kurniawati (2015) states that social media has no influence on purchase intention. Sa'ait et al. (2016) states that consumers get the trust and perception of a product or service from E-WoM. Furthermore, according to Sa'ait et al. (2016) consumers choose to read product reviews before making a purchase decision rather than relying solely on advertising. According to Almana & Mirza (2013) E-WoM like comments and reviews are important factors when consumers make purchasing decisions. Research conducted by Apriani and Pradana (2017) shows that Electronic Word of Mouth significantly influences purchase decisions. However, other research conducted by Wahyu (2017) shows that E-WoM has no significant effect on purchasing decisions.
According to Jalilvand and Samiei (2012) consumers are interested in reading good and bad experiences about a product through online media, where consumers will consider recommendations that lead to their purchase intention. This statement is reinforced by research conducted by Jalilvand & Samiei (2012) where E-WoM communication has a strong positive influence on Purchase Interest. However, other studies conducted by Shahrinaz et al. (2016) shows that E-WoM has no significant effect on purchasing decisions.
Everything related to the brand in the minds of consumers is the brand image (Suryani, 2013). According to Zhang (2015) most consumers make Purchase Decisions depending on the Brand Image not of the product itself. According to Kotler and Keller (2012) Brand Image can simplify consumer decision making about a risk. Research conducted by Oladepo & Abimbola (2015) says that Brand Image has a positive and significant influence on consumer purchasing decisions. However, other research conducted by Fatmawati et al. (2017) revealed that brand image has no effect on purchasing decisions.
According to Aaker and Keller (1990), a good brand image can increase brand consumer loyalty, trust, and also the interest to buy products from brands that they trust. A positive perception of the brand will lead to positive purchase intention Suryani (2013). This statement is supported by research conducted by Tati et al. (2015). The results showed that brand image influenced purchasing decisions through purchase intention. However, different results are shown by research conducted by R Naim (2019) which states that brand image has no effect on purchase intention Belch (2012) states that the output of an evaluation might generate purchase intention. In marketing science, when someone has not made an actual purchasing decision, then the approach to the behavior is purchase intention (Simamora, 2004). Buy interest is the desire to get a product or service that is in the minds of consumers in the long and short term (Sa'ait et al., 2016). According to Wee et. al. (2014) consumers will make greater actual purchases when they have an interest in buying a product. This statement is supported by research conducted by (Luong et al., 2017) that purchase intention has a positive and significant influence on purchasing decisions. Weisheng Chiu et al. (2019) states that purchase intention has no effect on purchasing decisions.
Based on the research gap above, the following hypotheses are obtained: Based on the description above, the research framework for analyzing the influence of social media, electronic word of mouth, and brand image on purchasing decisions through purchase intention is as follows: used in this study were 100 people using the incidental sampling method. Variables in this study include social media, electronic word of mouth, brand image, purchase intention and purchasing decisions. The data collection method uses documentation and questionnaires. The instrument testing is done by using validity and reliability testing. The analytical method in this study uses path analysis with SPSS version 23.

Validity test
Validity test results are used to measure the validity or validity of a questionnaire. Testing is valid if the value of sig. (2 tailed Pearson correlation <0.05).
Based on the calculation of 57 questions on the research questionnaire, there was a statement that was declared invalid. Where the statement shows the calculated sig alpha value> sig alpha table. The way to overcome this is to remove invalid question items. So there are 44 statement items that can be used to continue the research

Reliability Test
Data processing is performed using SPSS. Data reliability test can be performed with Cronbach Alpha (α) statistical tests. A variable is said to be reliable if it gives a Cronbach Alpha value> 0.70 (Ghozali, 2011). Contains the results of empirical or theoretical study written by a systematic, critical analysis, and informative. The use of tables, images, etc. only to support or clarify the discussion and is confined only to support substantial information, e.g., tables of statistical tests, the results of model testing, etc. Discussion of results should be argumentative regarding the relevance of the results, theory, previous research, and empirical facts, as well as demonstrate the novelty of the findings.

Classic assumption test
There are two ways to identify whether a variable is normally distributed or not. Namely with graph analysis and statistical analysis. The following is the SPSS output and an explanation of whether the variables are normally distributed or not with two analyzes:

Figure 2. Normality Test Results
Based on the results of the analysis it can be seen that in the p chart the data spreads around the diagonal line and follows the diagonal line. Then, it can be concluded that the regression model meets the normality assumption or the data is normal.

Multicollinearity Test
Based on the multicollinearity test results showed that each independent variable has a tolerance value above 0.10, namely social media (X1) of 0.928, E-WoM (X2) of 0.440, brand image (X3) of 0.438 and purchase intention (Y1) of 0.506 . While the VIF value of each variable is less than 10, namely social media (X1) of 1,078, E-WoM (X2) of 2,271, brand image (X3) of 2,286 and purchase intention (Y1) of 1,976. So it can be concluded that no multicollinearity. was found between the independent variables in this regression model.

Heteroscedasticity Test
The gleyser test shows that all independent variables have values : Based on the table, the result showed that all independent variables have sig. values > 0.05. It's shows that the regression model proposed in this study does not contain heteroscedasticity.

Hypothesis Testing Partial Test (T Test)
In testing the significance level with alpha (α) which has been determined is 5%. If the probability value is <0.05 then Ha is accepted, and vice versa. Following are the results of the partial test output: T test results with SPSS on Social Media variables (X1) obtained sig values of 0.158> 0.05. This means that H_1, which states that social media has a positive and significant effect on purchasing decisions, is rejected. T test results with SPSS on the variable E-WoM (X2) obtained sig value of 0,000 <0.005. This means that H_3, which states E-WoM, has a positive and significant effect on purchasing decisions is

Path Analysis
Path analysis is used to estimate the causality relationship between predetermined variables based on theory. The causality variables tested in this study are the relationship of social media, E-WoM, and brand image to the purchase decision and whether there is a relationship of social media, E-WoM, and brand image to the purchase decision mediated by purchase intention. Comparison of path coefficients is made using two regression model equations that show the hypothesis of the relationship.
Based on the above table, the model 1 regression equation can be arranged as follows: From the equation of model 1 it can be explained that in the regression equation model 1 means social media, electronic word of mouth, and brand image have a positive relationship with purchase intention. These results indicate that the better the meaning of social media, electronic word of mouth, and brand image will create purchase intention which then impacts purchasing decisions.
Knowing the value (error) of the regression equation 1, the formula e_1 = √1-R ^ 2 is used then e_1 = √ (1-0,494 =) 0,711, which shows that the variance value of purchase intention cannot be explained by social media variables, electronic word of mouth, and brand image.  In the regression equation model 2 means that social media, E-WOM, and brand image have a positive relationship with purchasing decisions. This means that any good improvement on social media, electronic word of mouth, and brand image will create a positive purchase intention that will result in a buying decision.
Knowing the value (error) of the regression equation value 2, then the formula e_1 = √1-R ^ 2 is used, then e_1 = √ (1-0,715 =) 0.534, which indicates that the value of the purchase decision variant cannot be explained by social media variables, electronic word of mouth, brand image and purchase intention.
Based on the calculation of the two regression equations above, it can be concluded that the regression in this study is as follows: Y1 = 0,169X 1 + 0,344X 2 + 0,371X 3 + е1 Y2 = 0,081X 1 + 0,407X 2 + 0,250X 3 + 0,280Y 1 +е2 The influence of social media on purchasing decisions through purchase intention The direct effect of social media on purchasing decisions through purchase intention is represented by β1 of 0.081. The indirect effect of social media on purchasing decisions through purchase intention can be determined by multip-lying the path coefficients β2 and β7, that is, 0.169 x 0.280 = 0.047. The total influence of the path coefficient is to add up the direct effect and indirect effect, namely β_1 + (β_2x β_7) = 0.081 + (0.169 x 0.280) = 0.128.
Based on the results of the calculation of the coefficient above it is known that the total path coefficient indirect> direct path coefficient. So it can be said that H2 which states that social media has a positive and significant effect on purchasing decisions through purchase intention is accepted.

The Effect of Electronic Word of Mouth on Purchasing Decisions Through Purchase Intention
The direct effect of social media on purchasing decisions through purchase intention is represented by β3 of 0.407. The indirect effect of electronic word of mouth variables on purchasing decisions through purchase intention can be determined by multiplying the path coefficient of the electronic word of mouth (β_4) 0.344 and the purchasing decision path coefficient (β_7) 0.280, which is 0.344 x 0.280 = 0.096.
The total influence of the path coefficient is to add up the direct effect and the indirect effect that is β_3 + (β_4 x β_7) = 0.407 + (0.344 x 0.280) = 0.503.
Based on the results of the calculation of the coefficient above it is known that the total path coefficient indirect> direct path coefficient. So it can be said that H_4 which states E-WoM has a positive and significant effect on purchasing decisions through purchase intention is accepted.

The Influence of Brand Image on Purchasing Decisions Through Purchase Interest
The direct influence of brand image on purchasing decisions is represented by β_5 which is equal to 0.250. The indirect effect of brand image variables on purchasing decisions through purchase intention can be determined by multiplying the path coefficient of the brand image 〖(β〗 _6) 0.371 and the purchase decision path coefficient (β_7) 0.280, which is 0.371 x 0.280 = 0.103.
Based on the results of the calculation of the coefficient above it is known that the total path coefficient indirect> direct path coefficient. So it can be said that H6 which states that brand image has a positive and significant effect on purchasing decisions through purchase intention is accepted.

CONCLUSIONS AND RECOMMENDATIONS
Based on the results of research and discussion, it can be concluded as follows: Social media has no significant effect on purchasing decisions. In this case purchase intention is able to mediate the influence of social media on purchasing decisions. That is, information about Poeniko Batik products on social media can trigger consumer purchase intention which then has an impact on purchasing decisions. Social media has a positive and significant influence on purchasing decisions through purchase intention. Electronic word of mouth has a positive and significant effect on purchasing decisions. This means that the more positive electronic word of mouth created in Poeniko Batik social media accounts will improve consumer purchasing decisions. Electronic word of mouth has a positive and significant effect on purchasing decisions through purchase intention. In this case purchase intention is able to mediate the effect of electronic word of mouth on purchasing decisions. This means that the more positive electronic word of mouth created in Poeniko Batik social media accounts can create consumer purchase intention, which will impact purchasing decisions. Brand image has a positive and significant effect on purchasing decisions. This means that the better the brand image built by Poeniko Batik in the minds of consumers can improve consumer purchasing decisions. Brand image has a positive and significant influence on purchasing decisions through purchase intention. In this case purchase intention is able to mediate the influence of brand image on purchasing decisions. That is, the better the brand image built by Poeniko Batik in the minds of consumers will create consumer purchase intention which will also have an impact on purchasing decisions. Purchase intention has a positive and significant effect on purchasing decisions. That is, the higher the consumer purchase intention of Poeniko Batik, the higher the consumer's purchasing decisions for the product.
The results of this study indicate that E-WoM has a positive and significant effect on purchasing decisions. Therefore, Poeniko Batik is expected for a marketing strategy to be able to create E-WoM. for example by providing the best service to consumers, so consumers are willing to provide reviews because of the good service that has been felt. Another way to increase positive E-WoM is to ask consumers to provide product reviews and then give rewards to those who provide testimonials, for example by giving discounts in the next purchase.
In this research, brand image also has positive and significant influence on purchasing decisions. Thus, Poeniko Batik is expected to maintain the brand image that has been well developed beforehand and implement strategies to improve the brand image. For example, by creating a good company logo with a unique, attractive and easy to remember logo design. In addition, you can also use marketing tools. Marking tools in this case can be done by using social media as a tool to promote business so that products are more easily recognized by consumers and can also increase brand awareness.
The results of this study also found that social media had no influence on purchasing decisions. For this reason, Poeniko Batik is expected to make something interesting on social media. For example, by creating creative, unique and attractive advertisements Poeniko Batik is expected to make product catalogs and videos uploaded in the media as attractive as possible so that it can distract consumers. In addition, by sharing information about product promos and discounts in order to attract consumers to buy Poeniko Batik products.