Effect of Price Discounts on Consumer Purchase Satisfaction (Study atIndomaretMajene Branch)

The high demand for goods and services by consumers, both in quantity and quality,encourages companies to compete to provide the best service to consumers. This condition hasan impact on the creation of competition among companies. Thus the company must prioritizecustomer satisfaction so that it can be said that marketing plays an important role in supportingthe company’s activities in increasing sales. Needs and desires are met as well as efficient priceswill determine consumer satisfaction. Customers are reduced or even lost, due to unsatisfactoryservice, so consumers move to other service providers. Here, companies are challenged withthis,in buildingan imageand providingquality andsatisfyingservices.

If customer satisfaction is fulfilled, then the consumer relationship with the company iswell established, allowing for the creation of loyalty and these consumers can promote thecompany by word of mouth which will provide benefits for the company. The company mustknowwhatdeficienciesthe company mustcorrectandwhatthe company mustimprove.

Discounts on products offered to consumers are one of the sales strategies to be able toprovide satisfaction to consumers. According to (Kotler and Armstrong, 2008) Discounts aredirectpricereductionsforapurchasewithinacertainperiodoftime,givingdiscountstoconsumers has the aim of appreciating customer response. Meanwhile, according to (Hasan,2008) that price is all forms of monetary costs sacrificed by consumers to obtain, own, utilize anumberof combinationsofgoodsand servicesfromaproduct.Consumer interest in owning and buying products is influenced by the urge from withinthe consumer to own and buy products. Encouragement from within the consumer to own aproduct is a response to stimulation (stimuli) both from outside and from within the consumer.Consumers have an interest in buying the product they want. Purchase intention is a behaviorthat arises as a response to an object that indicates a customer’s desire to make a purchase(Kotler, 2008). This interest will encourage consumers to make decisions on the problems theyface. The decision regarding the choice of consumers to buy or not the product they want.Purchasing decision is the consumer’s decision to buy about which brand to buy (Kotler andArmstrong,2008).According to (Fandy, 2008) consumer decision is a process in which consumers evaluatevarious alternative choicesandchoose one or more alternativesthatare needed basedoncertain considerations. If the considerations result in a positivedecision, the consumer willmakeapurchaseofthedesiredproduct.Thelargenumberofshoppingplaceshastheopportunityfor consumerstochoose,buy,andfulfill their lifeneeds.Oneofthefastestgrowingbusinesssectorstodayisretail.Thisisindicatedbytheincreasing number of retail businesses in Indonesia due to the large number of public requestsandpeople’sincreasinglymodernlifestyles,namelythosewhoprefertheconvenienceofshopping,the easeof findingproducts,practicality at affordableprices.One of the fastest growing retail businesses is Indomaret, which is engaged in retail goodstrading in almost all cities in Indonesia, including in Majene Regency. I

n the midst of businesscompetition, Indomaret must be able to compete by providing different values in the eyes ofconsumers and paying attention to the factors that influence consumer purchasing decisions inorder to survive in the midst of hectic competition and to increase sales turnover. Indomaret inMajene is one of the shops that often offers discounted prices. Several strategies in determiningit can be done by looking both in terms of time, usability,and the effect of holding a pricediscount policy.

Accordingto(Fandy,2008)thatdiscountpromotionsprovideseveraladvantagesincluding: being able to trigger consumers to buy in large quantities, anticipating competitorpromotions,andsupportingtradeinlargequantities.Meanwhile(Sutisna,2012)givesanexample of a case, namely when a consumer is walking around Indomaret, and does not intendto makeapurchase, suddenlytheconsumerseesacertainproductthatisholding alargediscount. Coincidentally, the product brand is his favorite brand. At that time the consumerdecides to buy the product. From this explanation, product brands that get discounted prices inaccordancewiththewishes of consumerswillcreatean incentivetomakepurchases

Effect of Price Discounts on Consumer Purchase Satisfaction (Study atIndomaretMajene Branch)

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