THE INFLUENCE OF WORD OF MOUTH (WOM) PROMOTION AND PRODUCT QUALITY ON PURCHASE DECISIONS OF ES CENDOL XAVERO IN BANDARLAMPUNG

ABSTRACT

Micro, Small, and Medium Enterprises operated by small-scale business actors play a strategic role in supporting Indonesia’s economic growth, particularly amid the increasing dynamics and competition in the business world. The purpose of this study is to analyze the influence of Word Of Mouth (WOM) promotion and product quality, both partially and simultaneously, on purchasing decisions for Es Cendol Xavero in Bandarlampung. This research employs a quantitative approach and was conducted on consumers of Es Cendol Xavero in Bandarlampung. The sampling method used in this study is non-probability sampling with a convenience sampling technique. The study involved 100 respondents, determined using the Lemeshow formula due to the unknown population size. Data analysis in this study was carried out using SmartPLS software with a Structural Equation Modeling - Partial Least Squares (SEM-PLS) approach. The results show that Word Of Mouth (WOM) promotion has a significant effect on purchasing decisions for Es Cendol Xavero in Bandarlampung, as indicated by a T- statistic value of 5.939 > 1.96 and a P-Value of 0.000 < 0.005. Product quality also has a significant effect on purchasing decisions for Es Cendol Xavero in Bandarlampung, with a T-statistic value of 4.181 > 1.96 and a P-Value of 0.000 < 0.005. Simultaneously, Word Of Mouth (WOM) promotion and product quality significantly influence purchasing decisions, as shown by an F-statistic value of 372.78 > 3.09.

Keywords: word of mouth, product quality, purchasing decision