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THE EFFECT OF DIGITAL MARKETING AND PRODUCT QUALITY ON
CUSTOMER SATISFACTION WITH PURCHASE DECISIONS AS A
MODERATION VARIABLE AT CV. CARLITOS MAJU PRATAMA
Diansyah
1
, Putri Nadya
2*
Faculty of Economic and Business, University of 17 August 1945, Jakarta, Indonesia
1,2
diansyah.170[email protected]
1
, putrinadyy[email protected]
2
ABSTRACT
The purpose of this study was to determine the effect of digital marketing and product quality on
consumer satisfaction with purchasing decisions as a moderating variable on CV. Carlitos Maju Pratama.
The population of this study are all consumers who have made purchases offline and online at CV.
Carlitos Maju Pratama. The sample of this research is 236 respondents. Analysis of the data used in this
study with the smart PLS method. The results of the study show: (1) Digital marketing has a positive
and significant effect on consumer satisfaction (2) Product quality has a positive and significant effect
on consumer satisfaction (3) Purchase decisions have a positive and significant effect on customer
satisfaction (4) Moderation of purchasing decisions strengthens and is significant the influence of digital
marketing on consumer satisfaction (5) Moderation of purchasing decisions strengthens and is
significant for the effect of product quality and on consumer satisfaction.
Keywords: Digital Marketing; Product Quality; Customer Satisfaction; Purchasing Decision
INTRODUCTION
The current economy is heavily influenced by developments in digital technology.
Technology-based companies such as fintech and e-commerce are growing very rapidly in
Indonesia. In addition, the Covid-19 pandemic has also accelerated digital transformation in
business and opened up new opportunities for future business growth. According to mobile
broadband penetration data in Indonesia, 65% and 41% of all Indonesian people shopped online
in 2016, therefore companies must accelerate or start the digital transformation process to survive
the current pandemic and future businesses. There are many types of digital marketing that
businesses can use to achieve their marketing goals and business opportunities in Indonesia,
especially in the e-commerce and fintech fields. The business impact of technological
developments has been faster exchange and delivery of information, automation of business
processes and increased business efficiency and productivity. Therefore companies must use
technology to improve their overall business performance.
Cv. Carlitos Maju Pratama is a supplier company in the city of Jakarta and specializes in
shop operations to sell products such as valves, fittings, instruments accessories, and for the needs
of oil & gas industry projects. The owners and management of this company sell products directly
and through email marketing. Satisfaction from purchases at Cv. Carlitos Maju Pratama is
carefully calculated by the owner and staff and will be related to Digital Marketing, Product
Quality, Consumer Satisfaction, Purchasing Decisions.
For a business, consumer satisfaction is very important because where consumers feel
satisfied with the products or services produced by the company (Astuti et al., 2021). Consumer
satisfaction is defined as a person's feelings of pleasure or disappointment resulting from
comparing the perceived effectiveness of a product (or outcome) with consumer behavior. Product
quality, price and location are several factors that increase consumer satisfaction after purchase.
Consumers are more likely to buy good quality products (Diansyah, 2016). And every business also
understands that consumers are the most important part, just like service businesses. Therefore
companies must provide satisfaction to consumers who meet the expectations and desires of
consumers in terms of service, product usability and the price offered.
Digital marketing has a huge impact on business. With digital marketing, marketing
techniques are implemented through electronic media such as websites, social media, e-
commerce. Digital marketing users can increase decision interest in online stores and increase
The Effect of Digital Marketing And Product Quality on Consumer Satisfaction with Purchasing
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product sales. Digital marketing can also help businesses to optimally control marketing costs on
a wider scale and track results from digital marketing media. In addition, digital marketing can
help businesses survive, develop, and compete in a healthy manner. In the current digital era, the
use of digital marketing is very important to facilitate community needs and improve business
performance (Mewoh et al., 2019). With the help of digital marketing, companies can get fast
feedback from consumers and will adjust their marketing strategies to consumers.
In addition, product quality for a company is an important factor that will influence
consumer decisions. Consumers tend to compare product quality based on reviews on e-
commerce before making purchasing decisions (Saragih, 2018). If the product offered is of poor
quality, this can damage the company's reputation and influence purchasing decisions. And
conversely if the product offered is of high quality, it can increase consumer confidence and build
a good reputation in business. In the digital marketing era, companies must utilize technology to
improve product quality that meets consumer expectations. In addition, companies must also
improve product quality and meet consumer expectations. In addition, companies must pay
attention to the current digital marketing strategy because to build a better company reputation.
According to (N. Ayu. Lestari & Iriani, 2018) when faced with choices such as brand, price,
and many other product attributes when making a purchase decision, consumers will tend to
choose the brand first and then consider the price that has been made. This is also important to
consider when making purchasing decisions, because of course it will take into account the
marketing strategy implemented by the company (Saragih, 2018).
Hypothesis
Theory Of Planned Behavior
Theory of Planned Behavior is based on the assumption that humans are rational beings
and use the information available systematically to them (Suleman, 2018). People think about the
consequences of their actions before deciding whether or not to take a particular action. The basic
idea of digital marketing is to build customer relationships through interesting and useful content.
With the help of digital technology, companies can expand their marketing reach more effectively
and efficiently. Thus digital marketing and product quality with consumer satisfaction affect
purchasing decisions. Based on the results of previous studies and forming research hypotheses.
The Influence of Digital Marketing on Consumer Satisfaction
Consumer satisfaction is part of consumer behavior, while consumer behavior is the study
of how individuals, groups and organizations select, buy, use, and how goods, services, ideas and
experiences consistently satisfy and manage needs and wants (Aji, 2021). Many factors affect
consumer satisfaction, one of which is digital marketing. At the same time, in today's marketing
era, digital marketing is a medium that is not limited, giving marketers the freedom to express
unlimited creativity in campaigns that previously used traditional advertising methods. Digital
marketing has an impact on consumer satisfaction, this has been proven in previous research
(Sopiyan, 2022). In accordance with the previous research statements and the arguments above, the
H1 hypothesis is set: the influence of Digital Marketing has an effect on consumer satisfaction.
The Effect of Product Quality on Consumer Satisfaction
Product quality is something that can be provided in the form of goods or services that can
meet and satisfy consumer needs. Product quality is a general characteristic of a product that
affects its ability to meet consumer needs. As research shows (Malonda & Stephen, 2020),
consumers generally know exactly what products they are buying and do not waste time buying
products that are not of high quality. According to (Ismayana & Hayati, 2018), research shows that
product quality has a significant effect on consumer satisfaction, because a company is considered
good if it has a positive impact on the company. In accordance with the previous research
The Effect of Digital Marketing And Product Quality on Consumer Satisfaction with Purchasing
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statements and the arguments above, the hypothesis H2 is set: the effect of product quality has an
effect on consumer satisfaction.
The Influence of Purchasing Decisions on Consumer Satisfaction
Purchasing decisions for manufactured products arise when consumers have done
consumer satisfaction (P. Lestari & Saifuddin, 2020). The purchasing process consists of five phases:
needs assessment, information search, alternative evaluation, purchasing decision and post-
purchase behavior (Cesariana et al., 2022). In the final phase, post-purchase behavior, consumers
evaluate the results of the purchase whether it meets their expectations or not, which then becomes
the basis of post-purchase actions, whether they are satisfied or not. If consumers are satisfied
with the performance of the products they buy, it means that consumers are more likely to buy
back the product or service. This is supported by research (Maghfiroh, 2019) which shows that
consumer choice affects consumer satisfaction. Thus, it can be concluded that there is a
relationship between purchasing decisions and consumer satisfaction. In accordance with the
previous research statements and the arguments above, the hypothesis H3 is set: the influence of
purchasing decisions affects consumer satisfaction.
Moderation of Purchasing Decisions on the Influence of Digital Marketing on Consumer
Satisfaction
A research that bases digital marketing on good purchasing decisions tends to be rational,
which affects consumer satisfaction. Digital marketing indirectly plays an important role in
influencing consumer satisfaction, because the form of marketing is quite good and offers
consumers an experience that can be included in purchasing decisions (Khoziyah & Lubis, 2021). ).
By increasing brand awareness, digital marketing can help increase brand awareness of a product
or service through online advertising, social media, and other digital marketing content (Laura &
Khotimah, 2022). By increasing brand awareness, consumers consider products more in their
purchasing decisions. Thus digital marketing has an important role. Purchase decision will have
a positive impact if the individual has a good perception. The role of purchasing decisions has the
potential to moderate the effect of digital marketing on consumer satisfaction. According to
previous research statements and the arguments above, the hypothesis is set. H4: Moderation of
Purchasing Decisions on the Influence of Digital Marketing on Consumer Satisfaction.
Moderation of Purchasing Decisions on the Influence of Product Quality on
Consumer Satisfaction
In purchasing decisions have an influence on product quality and consumer satisfaction
(Hilaliyah, 2017). Purchasing decisions can moderate the influence of product quality in creating
consumer satisfaction, namely purchasing decisions are closely related to product quality, if goods
and services are purchased and match what is expected by consumers, then there will be a decision
or satisfaction and vice versa (Nugroho et al., 2016). (Prayitno, 2015) shows that product quality has
a significant effect on purchasing decisions and consumer satisfaction. In addition, purchasing
decisions can also moderate the effect of product quality on consumer satisfaction (Iriani & Aida,
2019). Thus purchasing decisions can play an important role. This purchase decision has a positive
effect if the person has a good understanding of it. Purchase decisions have the potential to
mediate the effect of product quality on consumer satisfaction. According to previous research
statements and the arguments above, the hypothesis is set. H5: Moderation of Purchasing
Decisions on the Influence of Product Quality on Consumer Satisfaction.
.
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RESEARCH METHOD
Population and Sample
This study uses research samples from consumers of Cv. Carlitos Maju Pratama who often
buys goods online or offline. The number of samples taken was 236 respondents who often buy
products directly and indirectly. The sample size is taken using the Hair formula. The Hair formula
is used because the population size is not known with certainty and suggests that the minimum
sample size is 5-10 times the indicator variable. Based on the research, it is known that the number
of indicators is 20 so that the sample used is 10 x 20 = 200 then it is increased to 236 according
to the sample obtained in the study.
Research Variables and Indicators
This study had four variables studied. This study examined four variables. First "Digital
Marketing" as variable X1 (independent variable or independent variable), Digital marketing
according to (Purwana et al., 2017) Digital marketing is the use of technology to support marketing
activities that are shown to increase consumer awareness by adjusting customer needs. Digital
marketing variables have 5 indicators, namely accessibility, interactivity, entertainment,
credibility, informativeness according to (Masyithoh & Novitaningtyas, 2021). Both variables are
"Product Quality" as variable X2 (independent variable). Product quality is the ability of the
product to perform its functions, including overall durability, reliability, accuracy, ease of use and
product repair (Ibrahim & Thawil, 2019). Product quality variables consist of 5 indicators as
follows: shape, features, performance quality, easy to repair, durability (Ariella, 2018). The three
variables "Consumer Satisfaction" as variable Y (dependent or dependent variable) are
expressions and behaviors created by evaluating the performance of product products based on
the fact that expectations are in accordance with the wishes received. Usually, consumer
satisfaction arises after someone consumes products made by the company Sudirman et al.,
(2020). The four variables "Purchase Decision" as variable Z (moderating variable) are important
factors in purchasing because a purchasing decision is a consumer decision to buy the desired
item, a purchasing decision will occur. Purchasing decisions have 5 indicators, according to
Pratamasari and Sulaeman, (2022) indicators for purchasing decisions are price, brand image,
recommendations from others, ease of access, product availability. Research data were collected
using a questionnaire using a Likert scale of 1 to 5. All questions made in the research
questionnaire followed the indicators of each of the variables studied. Respondents' answers
collected were recapitulated for analysis.
Data Analysis Methods
The outer model consists of convergent validity test, discriminant validity and reliability
test. The parameters for the convergent validity test are the loading factor of more than 0.7; AVE
more than 0.5 ; communality is more than 0.5. The parameter of the discriminant validity test is
that the AVE root is greater than the variable correlation; cross loading more than 0.7 in one
variable. Reliability test can be done with two methods, namely Cronbach's alpha and composite
reliability with a value that must be more than 0.7 although a value of 0.6 is still acceptable. The
structural model (inner model) is evaluated with R2, path coefficient values or t-values for each
path to test the significance between constructs. The R-Square (R2) value of 0.67 is classified as
a strong model, the R-Square (R2) is 0.33 for the moderate model, and the R-Square (R2) is 0.19
for the weak model. The path coefficient score indicated by the t-statistic value must be above
1.96 for the two-tailed hypothesis and above 1.64 for the one-tailed hypothesis (Niddin et al., 2021).
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RESULT AND DISCUSSION
Respondent Characteristics
In this study, 236 respondents were male and female. The male and female respondents
who were sampled in this study were 17-20 years old consisting of 28.8%, 21-24 years consisting
of 37.6%, 25-28 years consisting of 14.1% and over 28 years consisting of 17.6%. With three
educational criteria from high school, 35.6% came from Diploma, 24.2% came from S1, 26.7%.
Software to be used is SmartPLS (Partial Least Square).This means that the indicators used in this
study are valid or can be said to have met convergent validity.
Construct ralibility and validity Test
The following can be seen the results of the Reliability and Validity construct :
Table 1 Construct Reliability and Validity
Source: SmartPLS Processed Data (2023)
The results showed that the Cronbach's Alpha and composite reliability scores were
greater than 0.7, meaning that the reliability test was declared reliable and met the criteria.
Measured using 3 criteria, namely R-Square, F-Square, and Path Coefficient Estimation.
Moderate R-Square results. The results of the F-Square value for the digital marketing
independent variable are 0.154, so it can be concluded that latent variables have a
moderate effect on the structural level.
Uji Hypotthesis Testing
Below are the results of hypothesis testing :
Table 2 Hypothesis Testing
Hypothesis
Original
Sample
Sample
Mean
Standard
Deviation
T
Statistics
P Values
Decision
H1
DM → KK
0.190
0.199
0.079
2.415
0.016
Accepted
H2
KP → KK
-0.174
-0.181
0.085
2.047
0.041
Accepted
H3
KPP → KK
0.336
0.329
0.129
2.679
0.008
Accepted
H4
KPP*DM → KPK
0.222
0.230
0.081
2.756
0.006
Accepted
H5
KPP*KP → KPK
0.460
0.458
0.088
5.220
0.000
Accepted
Source: SmartPLS Processed Data (2023)
Based on the table above, the results of the research hypothesis can be described as follows.
The results of the first hypothesis test stated that P Values = 0.041 <0.05 determined that digital
marketing had a positive and significant effect on consumer satisfaction. Thus the first hypothesis
was accepted. The influence of digital marketing can help individuals in marketing broadly, as
Cronbach’
s Alpha
rho_ A
Composite
Reability
AVE
Decision
DM
0.901
0.925
0.927
0.721
Accepted
KP
0.906
0.914
0.930
0.727
Accepted
KPK
0.907
0.917
0.931
0.730
Accepted
KPP
0.893
0.909
0.922
0.705
Accepted
MODERASI KPP*
DM
1.000
1.000
1.000
1.000
Accepted
MODERASI KPP*
KP
1.000
1.000
1.000
1.000
Accepted
The Effect of Digital Marketing And Product Quality on Consumer Satisfaction with Purchasing
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well as being able to control individual experiences in making decisions. One of the influences is
having digital marketing which has a strategy to increase a large influence on customer
satisfaction. Thus, the findings of this study support and complement the findings of previous
studies by (Aji, 2021; Sopiyan, 2022).
Based on the table above, the results of the research hypothesis can be described as follows:
the results of the second hypothesis test stated that P Values = 0.016 <0.05 determines that product
quality has a positive and significant effect on consumer satisfaction. Thus, the second hypothesis
is accepted as product quality has the form of goods or services that can meet and satisfy consumer
needs so that each determination of product quality can produce good customer satisfaction. Thus,
the findings of this study support and complement the findings of previous studies by (Malonda &
Stephen, 2020; Ismayana & Hayati, 2018; Muliati et al., 2023).
Based on the table above, the results of the research hypothesis can be described as follows.
The results of the third hypothesis test stated that P Values = 0.008 <0.05 determined that
purchasing decisions had a positive and significant effect on consumer satisfaction. Thus the third
hypothesis was accepted. consumer satisfaction with manufactured products appears when
consumers have made a purchase decision. The buying process consists of five phases: needs
assessment, information search, evaluation of alternatives, purchase decisions and post-purchase
behavior, in the final phase, post-purchase behavior, consumers evaluate the purchase results
whether they meet their expectations or not, which then becomes the basis for post-purchase
actions, whether they are satisfied or not. if the consumer is satisfied with the performance of the
product he bought, it means that the consumer is more likely to repurchase the product or service.
Thus, the findings of this study support and complement the findings of previous studies
by.(Cesariana et al., 2022; P. Lestari & Saifuddin, 2020).
Based on the table above, the results of the research hypothesis can be described as follows.
The results of the fourth hypothesis test stated that P Values = 0.000 <0.05 indicating that
moderation in purchasing decisions strengthens and is significant for the influence of digital
marketing on consumer satisfaction. Thus the hypothesis is accepted. In digital marketing, good
purchasing decisions tend to be rational, which affects consumer satisfaction. Digital marketing
indirectly plays an important role in influencing consumer satisfaction, because the form of
marketing is quite good and offers consumers an experience that can be included in purchasing
decisions. Thus, the findings of this study support and complement the findings of previous
studies by (Khoziyah & Lubis, 2021; Laura & Khotimah, 2022).
Based on the table above, the results of the research hypothesis can be described as follows.
The results of the fifth hypothesis test stated that P Values = 0.006 <0.05 indicating that
moderation in purchasing decisions strengthens and significantly influences product quality on
consumer satisfaction. Thus the fifth hypothesis is accepted. Purchasing decisions can moderate
the influence of product quality in creating consumer satisfaction, namely purchasing decisions
are closely related to product quality, if goods and services are purchased and match what is
expected by consumers, then there will be a decision or satisfaction and vice versa. If the quality
of the product produced is getting better, it will affect consumer satisfaction or potential customers
who will use the product, and ultimately trigger them to make a purchase. Therefore, it is
important for companies to pay attention to product quality in order to improve purchasing
decisions and consumer satisfaction. Thus, the findings of this study support and complement the
findings of previous studies by (Nugroho et al., 2016); (Iriani & Aida, 2019).
CONCLUSION
Based on the results of the discussion, the following conclusions can be drawn (1) Digital
marketing has a positive and significant effect on customer satisfaction (2) Product quality has a
positive and significant effect on customer satisfaction (3) Purchasing decisions have a positive
and significant effect on consumer satisfaction (4) Moderation of purchase decisions strengthens
and is significant on the influence of digital marketing on customer satisfaction (5) Moderation
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of purchasing decisions strengthens and significantly influences product quality and customer
satisfaction.
For companies, in terms of digital marketing, it can improve websites that have many types
of interesting features and not only registration features but product development features, selling
products and best-selling product lists and can create social media so that the company is known
to the public. Companies must also pay attention to better product quality and quality at affordable
prices so that they can build purchasing decisions, and also make consumers who buy products
feel satisfied. For further researchers can add consumer loyalty variables and emotional variables.
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