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INVESTIGATE HOW KPR BTN PURCHASE DECISIONS ARE
IMPACTED BY PRICE, BRAND AWARENESS, AND TRUST
Rezky Oktafiandi1 *, Yolanda2
Borobudur University, Jakarta, Indonesia12
PAPER INFO ABSTRACT
Received: 14th
January 2023
Revised: 17th
January 2023
Approved: 20th
January 2023
The goal of this study is to examine how pricing, brand recognition, and trust
affect consumers’ decisions to use KPR BTN. The analysis of multiple linear
regressions was used in this study. The primary data used in this study came
from respondents’ answers to questions they were asked. All KPR BTN users
make up the sample for this study. The findings of this study show that price,
brand awareness and buyer trust are all simultaneously significant variables
Purposive sampling was the technique ultilized in this study for sampling.
The researcher's consideration that the information required can be collected
from one specific target group that is able to supply information for the
research led to the selection of this technique. By distributing questionnaires
to BTN KPR clients, primary data was directly collected for research. When
two or more independent variables are employed as predictor factors and the
researcher wants to forecast how the state (ups and downs) of the dependent
variable (criteria), multiple regression analysis is used (in addition to
lowering their values). The findings of this study also indicated that variables
such as price and brand awareness had a major impact on purchasing
decisions, whereas variables such as trust did not.
KEYWORDS
Price, Brand Awareness, Trust, Purchasing Decision
INTRODUCTION
After having their basic needs for food and clothing addressed, a family's basic needs are
for housing. So that someone will strive to address the demands of their board after the needs
of the people for food and clothing have been met. The board's primary duty is to safeguard
against wildlife and natural disturbances. However, as human civilization advances, the role
of the house changes. It now serves as a place to feel safe and comfortable, as well as a social
status symbol and a barometer of wealth.
Housing is defined as a group of dwellings that serve as a residential environment or a
residential environment equipped with facilities and infrastructure in UU No. 4th 1992
(Permanasuri and Yulianasari 2021) when referring to housing and settlements. A house is
now a building that serves as a decent place to live, a way of raising a family, a reflection of
the dignity and worth of its residents, as well as an asset for its owner, after the definition was
broadened in UU RI No. 1, 2011 (Humairoh 2018). In contrast, the WHO states that a home is
a physical structure or building used for shelter, where the surrounding environment is
beneficial for physical and spiritual health as well as social situations that affect the health of
both families and individuals (Putri 2021).
A house is a structure that serves as both a place to live and a means of raising a family,
as defined by the Decree of the Minister of Health of the Republic of Indonesia Number
829/MENKES/SK/VII/1999 on Home Health Requirements. A percentage of homes in a work
area that at any given moment fulfill the minimal health standards for the home and sanitation
facilities components of the three components (home, sanitation facilities, and behavior) is
considered to be a healthy home.
Each institution needs to work together to coordinate the development of a healthy
residential system in order to implement spatial planning and raise living standards. Therefore,
Investigate How KPR BTN Purchase Decisions Are Impacted By Price, Brand Awareness, And Trust
52 Return: Management Studies, Economics and Business, Vol 2(No 1), Jan 2023
the government, developers, and banks are all accountable for playing this part. There needs
to be a paradigm shift in the marketing of housing developers connected to home finance
facilities offered by banks in order to keep up with the evolution of marketing that faces the
era of globalization, particularly in the housing business.
There needs to be a paradigm shift in how home developers are marketed in connection
with bank housing finance options in order to keep up with marketing trends that the
globalization period is bringing about, particularly in the housing industry. To help lower-
middle consumers cooperate with the government and banks so that the city's spatial planning
is more organized and there are no longer slums, developers are now building homes instead
of just thinking about making as much money as possible without considering the status of
consumers who bought their homes. There are hazards near riverbanks that could be disastrous
(floods and landslides)
Due to the significant financial commitment involved in purchasing a home, this
decision must be carefully considered. Whether you wish to be paid directly in cash or on
credit, financing must also be properly taken into account. The willingness to rely on someone
you can trust is what is meant by the word "trust." As the top ranking in the prestigious and
reliable survey organization topbrand-award.com. These findings were made public for the
initial survey period in 2015. As can be observed, Bank BTN ranks #1 among other reputable
banks' mortgage products with its KPR.
Because there are numerous developers working with Bank BTN to finance housing,
namely KPR in the Bekasi region, potential customers are frequently exposed to information
about BTN KPR. As a result, when consumers are considering KPR, BTN KPR is what comes
to mind.. according to the top level of the mental pyramid that represents consumer awareness.
The price of each home may be about the same in this instance, but when it comes time to pay,
the mortgage is what differentiates them. The interest rate is reasonable and fixed (fixed rate),
therefore the price of the house is not significantly different from paying cash. Compared to
other banks that offer mortgage products, BTN Bank with its BTN KPR products offers a low,
fixed interest rate.
Literature Review
1. Price
a. Definition of Price
According to (Philip and Keller 2012), price refers to the sum of money spent on a
good or service or the amount of value that the buyer must trade in exchange for the
advantages received or expected from a good or service. From the perspective of the
customer, though. When price and perceived benefits of a good or service are connected,
pricing is frequently employed as a measure of value. The proportion of perceived
benefits to price is known as value.
According to (Stanton 1994) in (Wijaya and Zulfa 2017), pricing is the overall value
that customers exchange for the advantages of owning and using a good or service, as
determined by a buyer or seller for a fixed price for all customers.
Economical arguments will demonstrate that low prices or consistently competitive
prices are one of the significant factors that improve marketing performance, but
psychological arguments may demonstrate that price is actually a measure of quality and
was therefore intended to be one of the sales instruments as well as an important
competitive weapon.
b. Pricing Strategy
Pricing should be aimed at achieving objectives. According to (Stanton 1994) in
(Cahyani 2017), Price targets are divided into three :
1) Profit oriented to: Achieving the company's investment profit or sales profit target;
Maximize profit.
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53 Return: Management Studies, Economics and Business, Vol 2(No 1), Jan 2023
2) Orient sales to: Boost sales; Boost or keep up percentage of the market.
3) Aim to maintain the current quo: Price Stability; Prevent rivalry.
c. Determination Pring Policy
According to Alma (1992) (Wirapraja et al. 2021) in determining price policy there
are 3 possibilities:
1) Pricing above the competitive price : This method can be used if the company can
convince consumers that the goods being sold are of better quality, more attractive
in shape and have other advantages over similar goods on the market.
2) Pricing below rival prices : This policy was chosen to attract more customer for
newly introduced and unstable goods in the market.
3) Following rival prices : This method is chosen to keep the customer from moving
elsewhere.
2. Brand Awareness
a. What Brand Awareness Means
Being able to recall and identify a brand as belonging to a particular product
category is known as brand awareness (Durianto 2004:57). Consumers' capacity to
recognize a brand in various contexts is known as brand awareness. This is accomplished
through brand recognition and recall. to a certain bran. By establishing brand familiarity
through frequent exposure, brand awareness is built and enhanced, and customers
become more comfortable with the bran to Kotler (2010) (Siregar 2015).
b. Brand Awareness Building
Given the close connection between the product category and the brand in question,
it is important to emphasize the portion inside the product category. For examples,
publishing about Garuda Indonesia flights will not help Garuda's brand awareness. As
soon as a consumer has doubts about whether a particular brand has been heard of before,
brand awareness must continue until they are convinced that the product is the only one
of its kind in its category (Durianto 2004:55).
Therefore, consumers tend to buy brands that are already known, because by buying
brands that are already known, they feel safe, avoiding various risks of use with the
assumption that brands that are already known are more reliable, (Durianto 2004:54)This
can represented in different levels of brand awareness that can be represented in the brand
awareness pyramid. From the lowest level to the greatest level, the brand awareness
pyramid looks like this:
1) The lowest level of the brand awareness pyramid, when customers are not aware of
a brand, is brand unawareness (does not know the brand).
2) When a brand is reminded through assisted recall, brand recognition, the lowest level
of brand awareness, returns..
3) Brand recall (recall of the brand) is unaided recall of the brand.
4) The brand that a consumer first mentions or that first enters their minds is said to be
top of mind. In other words, a brand serves as the consumer's primary association
with a range of brands..
c. Brand Awareness's Goals
First and foremost in any communication endeavor is brand recognition. By looking
at how brand awareness creates value, one may comprehend the role that it plays in
supporting brands (Durianto 2004:7). Four ways why brand awareness is beneficial:
Investigate How KPR BTN Purchase Decisions Are Impacted By Price, Brand Awareness, And Trust
54 Return: Management Studies, Economics and Business, Vol 2(No 1), Jan 2023
1) Anchors where various associations link: Because of the brand's increased cruising
power in consumers' minds, a brand with strong brand awareness will aid in
associations staying true to the brand. Thus, it may be inferred that if a brand's
recognition is poor, it will be challenging to connect the associations that marketers
have made with the brand.
2) Comfort or Preference: Customers will be familiar with the brand and develop a
strong liking for it over time if brand awareness is very high.
3) Real-world action or dedication: Brand awareness may represent an extremely
significant presence, commitment, and foundation for the business. Therefore, if a
brand is well known, its influence will always be felt. Many things contribute to a
brand's high customer awareness, including extensive advertising, a long history,
broad distribution, and well-managed operations.
4) A brand’s consideration: Picking the well-known brands in a group's industry to
evaluate and choose which brand to purchase is the first step in the purchasing
process. Brands that are frequently thought of have a high consideration value. A
brand won't be taken into consideration in consumers' minds if it is not committed
to memory.
3. Trust
a. Definition of Trust
Trust is defined as the willingness to rely on others who have been trusted
(Moorman, Deshpande, and Zaltman 1993). Credibility refers to the idea that the other
party has the necessary skills to carry out tasks, and kindness refers to the other party's
sincerity in his commitment to uphold the terms of the agreement. These two concepts
together make up trust (Ganesan 1994). According to this definition, building true
relationships with customers requires a vital part of marketing strategy: trust.
Trust itself shows a state in which the consumer believes or relies on the product or
service in the worst situation because of the hope that the product or service will provide
positive results to the consumer (Tjiptono 2011:193).
b. Trust Building Factors
According to (Tjiptono 2011:194), Brand trust is influenced by three things. These
three variables have to do with the three parties that make up the interaction between
consumers and brands. The brand itself, the brand maker, and the consumer make up the
three variables..
1) The decision of a consumer to trust a brand is greatly influenced by brand attributes.
This is as a result of user evaluations before to purchase. Predictability, reputation,
and competency are qualities that contribute to brand trust.
2) Consumer trust in a brand can also be influenced by the characteristics of the
organization that created it. Consumer comprehension of the product or service
brand is initially based on their knowledge of the business that created it. These traits
include a firm's ethics, desired company motivation, and reputation.
3) Brands and consumer attributes are two categories that interact. Therefore, brand
trust may be impacted by consumer brand attributes. These traits include
resemblances in brand personality, brand choice, and brand experience with
consumer emotional notions.
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4. Purchasing Decision
a. Definition of Purchasing Decision
The purchase decision is a number of stages taken by consumers before making a
decision to purchase a product acording to (Kotler 2009:223) in (Monangin 2015). The
understanding of consumer behavior by companies as producers is very important and
requires further attention. As stated by Kotler (2009) Consumer behavior is the term used
to describe how individuals and households who purchase goods and services for their
own use behave while making purchases (Rumondang et al. 2020). The consumer market
is made up of all end users combined. Marketers need to understand how consumers
choose products by looking beyond the different elements that may impact them (Saleh
and Miah Said 2019).
b. Types of Purchase Decision Behavior
There are several types of decision behavior in buying. More complex decisions will
usually involve more parties involved and more considerations. Four types of buying
behavior according to Kotler (2009) in (Khairani 2015) include:
1) Complicated buying behavior
Consumers engage in complex purchasing behavior when they engage in purchasing
and are aware of the large differences between brands.
2) Discomfort reduction purchasing behavior
Sometimes consumers are very involved in the purchase but see little difference
between brands. High involvement is recognized by the fact that these purchases are
expensive, rare and risky.
3) Buying habits
Many products are purchased under conditions of low consumer involvement and no
significant difference between brands.
4) Purchase behavior that seeks variety
Some buying situations are characterized by low consumer involvement but
significant differences between brands. In this situation, consumers often switch
brands. Brand switching occurs because of a search for variety rather than
dissatisfaction.
METHOD
The method used in this research is quantitative. Quantitative research aims to describe
phenomena or understand their patterns in a measurable way. By using quantitative methods
researchers can understand the quantity of a phenomenon that can be used later for comparison.
By using inferential statistics, researchers can see patterns of relationships, interactions, and
causality of observed phenomena. If a researcher wants to forecast the future condition (up or
down) of the dependent variable (criterion), they will employ multiple regression analysis. if the
predictor factors for two or more independent variables are changed (increased in value). As a
result, multiple regression analysis will be performed if there are at least two independent
variables.
RESULTS AND DISCUSSION
The coefficient of determination test was conducted to determine the magnitude of the
effect of variable X on variable Y in this study. This test can be done through the R2 value
test(R-Squared). The results of the determination test in this study are as follows:
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Determination Test ( R2)
a. Predictors: (Constant), Trust, Brand Awareness, Price
b. Dependent Variable: Purchasing Decision
The coefficient of determination means the effect of the independent variable (overall) on the
dependent variable is 53.4%. The remaining 46.6% were influenced by factors other than this
study.
The t test must be used to determine the significance of the study's findings (Partial Test). The
t-test is a test used to identify how pricing, brand recognition, and customer trust affect
purchasing decisions. Here are the outcomes of this study's t-test:
To be make sure of the validity of the above determination coefficient test, it can be known
through the Anova test or the F test. In this test, the following provisions apply:
(a) When the significance level is greater than 0.05, H0 is accepted and Ha is rejected.
(b) When the significance level is lower than 0.05, Ha is accepted and H0 is rejected.
In this study, the results of the Anova test were obtained as follows:
Uji F
ANOVAa
Model
Sum of Squares
Df
Mean Square
F
Sig.
Regression
899.473
3
299.824
23.523
.000b
Residual
713.777
56
12.746
Total
1613.250
59
a. Dependent Variable: Purchasing Decision
b. Predictors: (Constant), Trust, Brand Awareness, Price
Model Summaryb
Model
R
R Square
Adjusted R
Square
Std. Error of the
Estimate
Durbin-Watson
1
.747a
.558
.534
3.57016
2.409
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In this study, the calculated F value is 23.523 which is greater than the F table value which
is 2.70. This means that the second provision is true. In conclusion, The independent variable
and the dependent variable have a linear relationship. As a result of price, brand recognition,
and trust in making purchases, multiple linear regression analysis has produced the following
conclusions.:
Multiple Regression Test
Coefficientsa
Model
Unstandardized
Coefficients
Standardized
Coefficients
T
Sig.
Collinearity Statistics
B
Std.
Error
Beta
Tolerance
VIF
(Constant)
4.274
5.616
0.761
0.450
Price
0.815
0.118
.615
6.887
0.000
0.992
1.008
Brand
Awareness
1.541
0.370
.371
4.165
0.000
0.994
1.006
Trust
0.184
0.124
.132
1.482
0.144
0.996
1.004
Dependent Variable: Purchasing Decision
Based on the table above, it was found that the variable that most influences the interest in
buying a new product is Price because it has a beta value of Standardized Coefficient that is
greater than other variables which is 0.615.
CONCLUSION
Based on the results of the data analysis, part (t-test) of the purchase decision is influenced
by price and brand awareness, because the interest rate set by BTN in its mortgage products
makes the price of the house purchased not too expensive even with the purchase of credit and
will. increasing the desire of a few customers to take back KPR products from BTN because
house prices that are not too expensive will affect some customers who want to take back this
mortgage product such as retirees who want to invest in real estate.
With brand awareness of a product, it is possible to be the first choice when consumers
will consider alternative evaluations when making a decision. However, it does not focus on
the high brand awareness of BTN's KPR products so that the marketing manager from BTN
forgets the marketing side of BTN itself. In the researched product which is KPR BTN, Bank
BTN as a provider of mortgage products also does not forget to do marketing work so that the
product still has a high brand awareness from the public by participating in real estate
exhibitions, not forgetting to also install billboards. and advertisements on billboards in travel
and also support one of the celebrities, Syahrini, to continue marketing their products.
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