The Influence of Location, Price, and Product Quality on PurchaseDecisions in The Hermawan Village Housing, Kediri Regency

Abstract

Research aim:

This study aims to analyze how location, price, and product quality individually and collectively influence the decision to purchase a housing unit at The Hermawan Village Kediri. Another objective is to identify which factors have the most dominant influence on the buyer's decision-making process.

Design/Method/Approach:

This research employs a quantitative approach using a causal research design. The population of the study consists of all consumers who have purchased housing units at The Hermawan Village residential area in Kediri, totaling 85 respondents. A saturated sampling technique was adopted, in which the entire population was included as the research sample. Data were gathered through a structured questionnaire measured using a five-point Likert scale. The data obtained were subsequently analyzed using multiple linear regression analysis. In order to ensure the accuracy and reliability of the research data, the analysis was supported by instrument validity and reliability tests, as well as classical assumption tests, including normality, multicollinearity, and heteroscedasticity tests.

Research Finding:
The findings reveal that, when examined individually, the variables of location and price do not have a significant effect on purchasing decisions. In contrast, product quality demonstrates a positive and statistically significant effect and emerges as the most influential factor in shaping purchasing decisions. Simultaneously, the variables of location, price, and product quality collectively exert a significant influence on purchasing decisions, with an adjusted coefficient of determination (R²) of 58.8%.

Theoretical contribution/Originality:
This research provides additional understanding and insight related to the importance of product quality compared to location and price in influencing consumer decisions in the residential property market. The integration of these three variables within one housing project provides novelty for regional property studies.

Practitioner/Policy implication:
The results can help housing developers improve their marketing strategies by focusing on product quality, as better building features and facilities can increase buyer trust and boost sales.

Research limitation:
The limitation of this study lies in the restricted research area, which focuses only on one housing project, and the limited number of variables. Future research is suggested to include wider locations and additional variables such as promotion, brand image, or perceived value.

Keywords: Location, Price, Product Quality, Purchasing Decision, Housing, The Hermawan Village Kediri.