The Effect of Product Quality on Purchase Decisions through Price Fairness as a Mediating Variable Among Customers of Coffee Shop X in Bandung

Dewi Ayu Larassati(1*), Mukaram Mukaram(2), Hidya Indira Lastari(3)


(1) Business Administration Program, Department of Business Administration, Bandung State Polytechnic, Bandung, Indonesia
(2) Business Administration Program, Department of Business Administration, Bandung State Polytechnic, Bandung, Indonesia
(3) Business Administration Program, Department of Business Administration, Bandung State Polytechnic, Bandung, Indonesia
(*) Corresponding Author

Abstract


Increasing competition in the coffee industry, particularly among micro, small, and medium-sized enterprises (MSMEs), has prompted business owners to understand the factors that influence consumer purchasing decisions. This study aims to analyze the effect of product quality on purchasing decisions through price fairness as a mediating variable among consumers of Coffee Shop X. The study employs a quantitative approach using a survey method and a cross-sectional design. Data were collected from 369 consumers who had previously purchased and consumed products from Coffee Shop X and were analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS) with the assistance of SmartPLS 4. The results indicate that the model met the criteria for validity and reliability and demonstrated moderate explanatory power. Product quality was found to have a positive and significant effect on both price fairness and purchase decisions, while price fairness also had a positive and significant effect on purchase decisions and partially mediated the effect of product quality on purchase decisions. Coffee Shop X needs to consistently maintain product quality and set prices that are perceived as fair to increase purchase decisions and strengthen the business’s competitiveness.

Keywords: product quality, price fairness, purchase decision, SEM-PLS

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DOI: https://doi.org/10.26714/vameb.v22i2.21832

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