The Effect of Sales Promotion on Purchasing Decisions on Customer Loyalty of Brand Beverages Re.Juve

 

Agung Febra Pinota

Bakrie University Jakarta, Indonesia

Email: [email protected]

Article Information

 

ABSTRACT

Received: 29 March 2023

Revised: April 12, 2023

Approved: April 14, 2023

Online: April 16, 2023

 

This study aims to determine whether the influence of sales promotion on the purchase decision of the Re-Juve brand, to find out whether the influence of purchasing decisions on customer loyalty of the Re-Juve brand, to find out whether the influence of purchase decisions can mediate the influence between sales promotion and customer loyalty. The data used is primary data, namely from the results of questionnaires conducted by 150 respondents, these respondents are respondents who buy Re-Juve branded drinks from markets and websites in Jakarta. The research model is quantitative with the analysis used starting with the formation of an optimal portfolio and continuing To test each variable, namely promotion and purchase decisions on customer loyalty, a t test is used, while to test the effect together using the f test. The results showed that sales promotion affects purchasing decisions, purchasing decisions affect customer loyalty, and purchasing decisions can mediate the influence between sales promotion and customer loyalty.

Keywords

 

Promotions, Purchase Decisions, and Customer Loyalty.

 

 

INTRODUCTION

An important factor in the survival of companies today needs to be realized the importance of having a nutritious and balanced diet to meet desires and be able to satisfy and find information on products and services. By creating a close relationship between consumers and companies will provide satisfaction to consumers. According to the marketing concept, companies that can survive and win competition in the global market are companies that are able to offer more value and in accordance with customer wishes.(Kotler, n.d.)

Description: Fruit consumption of Indonesian population

Figure 1 Total fruit consumption of the population in Indonesia

Source: Lokadata

The results of the 2011-2020 National Socioeconomic Survey (Susenas) show that the fruit intake of the Indonesian population is still far from the standards set by the World Health Organization (WHO). On average, in that 10-year period, the fruit consumption of the Indonesian population only rose 15 percent, from 39.44 kilo calories to 45.37 Kcal.

Description: Chart, bar chart

Description automatically generated

Figure 2 Fruit and Vegetable Consumption in Asia

Source: FAO (2013)

 

In the midst of the rise of consuming healthy foods, one of the healthy living trends that began to be in demand by the Indonesian people is cold-pressed juice, Cold pressed juice is a juice obtained by using a hydraulic press to extract juice from fruits and vegetables. Unlike the juice obtained from juicer machines in general, cold pressed juice produces juice without mechanical heat that can damage vitamins and other heat-resistant nutrients in ingredients, especially fruits and vegetables. With the presence of cold-pressed juice, Indonesian people can consume fruits and vegetables in a form and taste that is good and practical. In the midst of intense competition between fruit juice beverage industry companies in Indonesia, especially cold-pressed juice drinks, one company that offers healthy and practical drinks, namely PT Sewu Segar Primatama which produces cold-pressed juice under the brand Re.Juve. PT Sewu Segar Primatama, which was established in 2014, is part of the Gunung Sewu Kencana Group. Until now, Re.Juve has more than 20 outlets spread across Jakarta, Bogot, Depok, Tangerang, Bekasi.

Along with the growing trend of cold-pressed juice in Indonesia, especially Jakarta, Bogor, Depok, Tangerang, Bekasi, this motivates other companies to run similar beverage businesses, so many other cold-pressed juice brands have emerged. Re.Juve is one of several cold-pressed juice brands in Indonesia. Brands in circulation include Naked Press, Burgreens, Mama Roz.

In selling a product, promotion has major implications in marketing activities according to research conducted by . To influence purchasing decisions is closely related to the promotion of the Honda Brand in the city of Medan. Purchase decisions greatly affect the promotion partially. Promotion is a science used to study the target market, types of consumers and types of locations in marketing company products so that promotion can take place effectively and efficiently in increasing company sales (Veronika &; Hikmah, 2020).(Kusumawati, 2019)

In the results of this study, this study examined the influence of consumer products on the purchase intention of fruits and vegetables during the pandemic, consumer purchasing decisions are defined as methods in choosing a product based on the wishes of each individual or group. While the purchase decision is a concept that is accepted and approved by each individual or group to decide which product to buy after the previous determination (Maddinsyah, 2020).

Research findings show that knowledge of product quality has a great influence on purchasing decisions, some of which influence preferences from others become other factors for consumers to consider in buying fruits and vegetables by prioritizing consumer safety in accordance with health protocols.

According to promotion is said to be a specific blend of advertising, sales promotion, public relations, personal selling, and marketing objectives that companies use to persuasively communicate customer value and build customer relationships, a combination of promotional tools designed to achieve goals and provide consumer direction. information. persuaded to make a purchase. Promotion is one of the main factors that determine the success of a marketing program. Regardless of the quality of a product, if consumers have not heard and are not sure of the usefulness of the product, consumers will not buy it.(Kotler et al., 2017)

(Kusumawati, 2017) states that promotion is persuasive, inviting, urging, persuading and convincing communication.  argues that promotion is one of the variables of the marketing mix. Promotion not only serves as a communication tool between companies and consumers but also as a tool to influence consumers in buying a product. Several studies have proven that promotion has a significant effect on purchasing decisions (Ernawati, 2019), no different from the results of research which states that promotions also have a positive effect on purchasing decisions.(Laksana, 2019)(Harsono, 2013)

(Kotler & Armstrong, 2010) states that promotions can serve to 1) seek and get attention from potential customers, 2) create buying interest with the intention that consumers feel interested in the products offered 3) increase the curiosity of potential consumers to have products that are attractive to consumers. Offered. While promotional indicators mention 1) Promotional Message as a measure of how well the promotional message is carried out and delivered to consumers 2) Promotional Media is the media used in conducting promotions. 3) Promotion time, which is the duration of promotion carried out by business actors. So the hypothesis is compiled as follows:(Kotler & Armstrong, 2014)

H1 = Sales Promotion has a positive influence on purchasing decisions.

According to customer loyalty as people who buy, especially those who regularly and repeatedly. A person who continuously and repeatedly comes to the same place to satisfy his desires by owning a product or service and paying for that product or service is the understanding of the customer. Repetitive behaviors, linkage and high involvement in choosing, which begins with the search for external information and the evaluation of alternatives to existing products, constitute loyalty. The learning curve and result of the customer's own experience in making consistent purchases over time is that customer loyalty is not formed in a short period of time. If what you get is as expected, this purchase process will be repeated. It can be said that customer loyalty is born. If customers don't find the experience satisfying, they won't stop trying other brands until they get a product or service that meets their criteria. Loyalty is the increase in purchases and consumption that customers make for the company. So the hypothesis is compiled as follows:(Kusumawati, 2020a)

H2 = Purchase Decision has a positive influence on Customer Loyalty.

According to the word loyalty is a process, at the end of the process, satisfaction has an effect on perceived quality, which can have an impact on loyalty and intention for certain behaviors of a customer. Brand loyalty refers to the behavior and patterns of repeat purchases that are characteristic of empirical research. Customers should not choose the same brand when buying the same car because brand loyalty influences a customer's purchasing decision, but not always. A very important factor that can influence a customer's purchase decision and bind it is the current price comparison, besides that in buying the same brand it is also necessary to pay attention to the quality of the car.(Kusumawati, 2020b)

Brand is also described as a commitment to repeatedly buy the same brand, which is the primary definition of loyalty. Customers tend to prefer to buy their favorite brands and ignore competitors' brands. According to sales promotion is a retailer promotion program, the goal is to drive sales or increase sales, or to keep customers interested and continue shopping. Sales promotion is a wide variety of offers and incentives given to buyers who aim to get a certain response. It is generally believed that brand loyalty encourages customers to buy the same brand regularly and prevents them from switching to another brand. Brand loyalty motivates consumers to buy the same brand on a regular basis and limit them to the same brand. This series of processes inevitably leads to brand equity, which further increases the company's sales and profits. Customer satisfaction and customer satisfaction motivate buyers to make positive purchasing decisions to buy the same product or brand from the same company, which is the goal of achieving brand loyalty. Then the hypothesis is structured as follows:(Malhotra Naresh & Dash, 2015)(Syriac & Shafarudin, 2021)

H3 = Purchase decisions can mediate the influence between sales promotion and Customer Loyalty.

 

METHODS

This type of research is quantitative descriptive research, through correlational studies to analyze the causality relationship between research variables according to the hypotheses compiled. The instrument to be discussed consists of 2 (two) independent variables, namely promotion (X), purchase decision (Z), while the dependent variable is customer loyalty (Y). The population in this study is all consumers who have bought re.juve brand drinks in Jakarta on marketplaces and websites. The research was taken by 150 respondents who bought re.juve branded drinks from markets and websites in Jakarta. The study used a quantitative method design by filling out questionnaires directly from consumers who bought re.juve branded drinks at least 3 times buying on the official website and re.juve marketplace.

 

RESULTS

Preliminary Instrument Test Results

The overall goodness of measurement, to ensure that the measure used is reliable, able to measure the same data consistently, and is valid and measure exactly what it wants to measure, pre-test results can be used. In this test, 30 questionnaires were distributed and 30 questionnaires returned with a response rate of 100%.

Pre-test Reliability Results

This study tested item reliability using internal consistency-reliability tests where tests were administered and measured with Cronbach alpha coefficient, composite reliability, and item-total adjusted correlation. The table below is the pre-test result to ensure reliability.

Table 1 Pre-test Reliability Results

Purchasing Decision

0.864

0.6

Customer Loyalty

0.931

0.6

Sales Promotion

0.983

0.6

 

Based on the table above, it can be seen that all variables namely Purchase Decision, Purchase Decision and Sales Promotion have a Cronbach Alpha value of > 0.6, so it can be said to be reliable.

Pre-test Validity Results

Next is to conduct a pre-test validity test with the following results:

Table 2 Pre-test Purchase Decision Variable Validity Test Results

 

Based on the table above, it is known that the value of r is calculated > r table (0.361) then all question items for the Purchase Decision variable are declared valid. And it can be continued for research.

Pre-test Customer Loyalty Variable Validity Test Results

From the table above, it is known that the value of r is calculated > r table (0.361) means that all elements of the Customer Loyalty variable question have been validated. And it can be continued for research.

Table 3 Pre-test Sales Promotion Variable Validity Test Results

Based on the table, it is known that the value of r is calculated > r table (0.361) means that all question items of sales promotion variables are declared valid and can be continued for research.

Actual Research Results

In the next step, after verification that the measures are valid and reliable, the researcher can proceed to actual testing. In actual testing, convergent validity and measurement clarity are tested using AVE, Fornell-Larcker criteria, factor loading, and using composite reliability, total product correlation, and Cronbach alpha reliability.

Table 4 Descriptive Statistics           

 

N

Minimum

Maximum

 Average

Std. Deviation

KP1

150

12

100

  60,6600

20,04519

KP2

150

6

100

  69,4200

17,61797

KP3

150

6

100

  77,8867

18,89126

KP4

150

6

100

  68,3933

19,53104

KP5

150

1

100

  71,9200

21,23929

KP6

150

4

100

  67,9133

22,34565

Average

  69,3656

 

LP2

150

2

100

  66,4733

21,32733

LP3

150

6

100

  68,8067

19,19406

LP4

150

0

100

  62,2667

23,49487

LP5

150

6

100

  67,0400

20,47486

LP6

150

4

100

  71,8333

17,65836

Average

  67,2840

 

SP1

150

2

100

  64,0267

22,50397

SP2

150

2

100

  61,8667

23,62988

SP3

150

2

100

  63,7933

20,95739

SP4

150

0

100

  64,6200

21,80409

SP5

150

4

100

  64,6133

20,8384

SP6

150

1

100

  65,9133

21,24069

Average

  64,1389

 

Valid N (listwise)

150

 

 

  67,1765

 

Source: Primary Data processed (2022)

Based on the table above, it is known that the average for the purchase decision variable is 69.3656 meaning that the majority of respondents agree that Rejuve products are the main choice for healthy drinks, consumers prefer Rejuve products over other products, the Rejuve brand is the main choice for healthy drinks, the Rejuve brand is the best brand compared to other brands, it is easy to get Rejuve products in any amount and buying only one Rejuve product is not enough.

In the customer loyalty variable, it is known that the average is 67.2840, this shows respondents agree that respondents always buy Rejuve products when they want to buy healthy drink products, respondents always want to buy Rejuve products again, respondents always remember the Rejuve brand when they want to buy healthy drink products, respondents do not choose other products even though these products are trending, respondents always choose Rejuve products over other products and believe that  Rejuve products are the best.

In the sales promotion variable, it is known that the average is 64.1389, this shows respondents agree with the statement that Rejuve provides discounts with applicable terms and conditions, such as uploading on Instagram by providing captions about Rejuve, Rejuve provides coupons for one free item because they have purchased products worth IDR 100,000.00, Rejuve provides discounts for purchases with a certain amount,  Rejuve provides discounts during birthday events or others, special discounts for electronic wallet (e-wallet) users and special discounts for certain credit card users.

Actual Test Reliability Test Results

According to (Sekaran and Bougie, 2016), reliability tests are carried out to show the accuracy, consistency and precision of meters when measuring structures. This study tested item reliability using internal consistency-reliability tests where tests were administered and measured using Cronbach alpha coefficient, composite reliability, and adjusted item-total correlation. The table below shows the pretest reliability results.

Table 5 Actual test Reliability Results

Variable

Cronbach alpha

Result

Purchasing Decision

0,957

Reliable

Purchase Loyalty

0,939

Reliable

Sales promotion

0,893

Reliable

Source: Primary Data processed (2022)

The table above shows that all variables are considered reliable because they exceed the threshold of 0.7 for Cronbach alpha.

Actual Test Validity Test

Researchers need to make sure the measurements are valid, making sure they are reliable. First, researchers need to test the validity of convergents that can be tested using the Cross-Loading (PLS) method. Table 4.6 shows the test results in detail:

Validity Test for Actual Test (Discriminant Validity) – Cross Loading Final

Table 6 Purchase Decisions Purchase Loyalty Purchase Sales promotion

 

Purchasing Decision

Purchase Loyalty

Sales promotion

KP1

0,868

 

 

KP2

0,887

 

 

KP3

0,928

 

 

KP4

0,896

 

 

KP5

0,948

 

 

KP6

0,916

 

 

LP1

 

0,913

 

LP2

 

0,875

 

LP3

 

0,859

 

LP4

 

0,886

 

LP5

 

0,889

 

LP6

 

0,828

 

SP1

 

 

0,841

SP2

 

 

0,906

SP3

 

 

0,924

SP4

 

 

0,763

SP5

 

 

0,899

SP6

 

 

0,923

Source: Primary Data processed (2022)

 

The table above shows that objects are grouped in such a way that each group has its own components. Therefore, based on the results in Table 5.9, convergent validity is determined. The mean variance extracted to measure convergent validity is another method that can be used to measure convergent validity. This is the next additional method. If the mean variance extract value (AVE) is greater than 0.5, which is a rule of thumb (Hair et al., 2016), a convergent validity test can be demonstrated.

Table 7 AVE Table

Indicators

AVE

Purchasing Decision

0.824

Purchase Loyalty

0.766

Sales promotion

0.663

Source: Primary Data processed (2022)

 

Based on the results of the analysis in the Table above, it appears that all variables exceed the threshold of 0.5 set for AVE. Therefore, convergent validity is established. The next step after determining convergent validity is discriminant validity testing conducted using the correlational method in this study. Table 8 shows the correlation test results.

Table 8 Actual test Discriminant Validity

 

Purchasing Decision

Purchase Loyalty

Sales promotion

Purchasing Decision

0.908

 

 

Purchase Loyalty

0.863

0.875

 

Sales promotion

0.783

0.638

0.814

Source: Primary Data processed (2022)

 

From the results in the table above, it can be seen that the validity of the discriminant is now given because the value of the discriminant indicator is greater than the value below the discriminant point. Therefore, the validity of the discriminant is determined.

VIF Actual Test

 The variance inflation factor is used to test multicollinearity. The threshold for VIFs is 5. If the indicator exceeds this value, it is evidence of multicollinearity and indicates that it is redundant or no longer needed. This table shows that the VIF values of all indicators are below 5 which means that multicollinearity does not occur.

Table 9 VIF Table

 

Purchasing Decision

Purchase Loyalty

Sales promotion

Purchasing Decision

 

1.172

 

Purchase Loyalty

 

 

 

Sales promotion

1.000

1.172

 

Source: Primary Data processed (2022)

Hypothesis Test Results 

After verifying the validity and reliability of the measures used in this study, the next step is to test the hypothesis of the selected research model. To analyze the relationship model between endogenous and exogenous variables of the research model, SEM can be used in this study. PLS-SEM has 2 parts that approach it, namely the internal model and the external model, namely the structural model and the measurement model. These sections are discussed in the following chapters.

Outer Model

According to (Ringle, 2011), external models or measurement models show directional arrows between variables and indicators for each variable. Based on the results, the researcher must observe and compare the results and ensure the fit of the model. In evaluating external models, researchers use external loading, component reliability, Cronbach's Alpha, AVE, and VIFs calculated with Smartpls.

 

 

 

Table 10 Inner model results

Variable

Indicators

Outer Loading

Cronbach's Alpha

Composite Reliability

AVE

Conclusion

Purchasing Decision

KP1

0,868

0,957

0,966

0,824

Fit

KP2

0,887

Fit

KP3

0,928

Fit

KP4

0,896

Fit

KP5

0,948

Fit

KP6

0,916

Fit

Purchase Loyalty

LP1

0,913

0,939

0,952

0,766

Fit

LP2

0,875

Fit

LP3

0,859

Fit

LP4

0,886

Fit

LP5

0,889

Fit

LP6

0,828

Fit

Sales promotion

SP1

0,841

0,893

0,915

0,663

Fit

SP2

0,906

Fit

SP3

0,924

Fit

SP4

0,763

Fit

SP5

0,899

Fit

SP6

0,923

Fit

Source: Primary Data processed (2022)

 

Based on the results in the table above, Cronbach's alpha results show that all variables exceed the threshold of 0.7. Based on the results (Hair et al., 2014), the item is said to be reliable because it is above the threshold if it is above 0.7.

Composite reliability is another way to measure product reliability. The results in the table above show that the combined reliability of the three variables exceeds the threshold of 0.7. Based on the results (Hair et al., 2014), the item is said to be reliable because it is above the threshold if it is above 0.7. The AVE results in Table 5.13 show that the value of 3 variables exceeds the threshold of 0.5. According to (Hair et al., 2014), the AVE value refers to how much the construct can explain the variance of the indicator. The threshold is 0.5 or 50%, if the value is less than 0.5, then there is an error in the title. VIF indicates potential collinearity problems, as shown in Table above that all VIF values for products do not exceed 5, which is below the VIF threshold. Therefore, the element is unlikely to have collinearity problems.

Inner model

According to (Hair et al., 2014), the model is illustrated on both latent and exogenous and endogenous variable relationships. Exogenous ones come from outside while endogenous comes from inside research. 

 

 

 

 

 

 

 

 

 

 

 

 


Figure 3 Relationship of Latent, Exogenous and Endogenous Variables

 

 

Model path

To assess the model further, researchers will use the path coefficients, critical values, and p-values shown in the table below:

Figure 4 Structural Model Results

H

Variable relationships

Path Coefficient

T-statistics

P-Value

Conclusion

H1

 Sales promotion has a positive and significant influence on purchasing decisions.

0.383

4.977

0.000

H1 accepted

H2

Purchase Decisions have a positive and significant influence on Customer Loyalty.

0.860

19.393

0.000

H2 accepted

H3

Purchase decisions can mediate the influence between sales promotion and Customer Loyalty

0.008

0.142

0.887

H3 rejected

Source: Primary Data processed (2022)

 

The results in the table above show that no single variable has a path coefficient of 0 or less than 0 which means the relationship between variables is strong. Hypothesis 1 states that promotion affects purchasing decisions with a path coefficient of 0.383, a t-statistic of 4.977, and a p-value of 0.000. From this it follows that H1 is supported.

Hypothesis 2 states that purchasing decisions affect customer loyalty with a path coefficient of 0.860, a t-statistic of 19.393, and a p-value of 0.000. From this it follows that H2 is supported.

Hypothesis 3 states that based on a path coefficient of 0.008, a t-statistic of 0.142, and a p-value of 0.887, purchasing decisions can mediate the influence between sales promotion and customer retention. From this it follows that H3 is not supported.

 

Discussion

The Effect of Sales Promotion on Purchasing Decisions

Hypothesis 1 states that sales promotion affects purchasing decisions with a path coefficient of 0.383, t-statistics of 4.977 and a p value of 0.000. Therefore, it can be concluded that H1 is supported.

(Madura, 2014) states that promotion is persuasive, inviting, urging, persuading and convincing communication. Lupiyoadi (2014) argues that promotion is one of the variables of the marketing mix. Promotion not only serves as a communication tool between companies and consumers but also as a tool to influence consumers in buying a product. Several studies prove that promotion has a significant effect on purchasing decisions, not unlike the results of research that states that promotions also have a positive effect on purchasing decisions.(Kusumawati, 2016)

(Gerung Et Al., 2017) states that promotions can serve to 1) seek and get attention from potential customers, 2) create buying interest with the intention that consumers feel interested in the products offered 3) increase the curiosity of potential consumers to have products that are attractive to consumers. Offered. While promotional indicators mention 1) Promotional Message as a measure of how well the promotional message is carried out and delivered to consumers 2) Promotional Media is the media used in conducting promotions. 3) Promotion time, which is the duration of the promotion carried out by business actors.

The results of this study are supported by the results of respondents' responses to the sales promotion variable which showed an average value of 64.1389 which means that respondents agreed that in holding sales promotions Rejuve often provides promos in the form of giving discounts with applicable terms and conditions, such as uploading on Instagram by providing captions about Rejuve, Rejuve also provides coupons for one free item because they have purchased products worth IDR 100. 000,00 in addition, Rejuve also provides discounts for purchases with a certain amount, during birthday events or others and there are special discounts for electronic wallet (e-wallet) users and special discounts for certain credit card users.

 

 

The Effect of Purchasing Decisions on Customer Loyalty

Hypothesis 2 states that Purchase Decisions affect Customer Loyalty with a path coefficient of 0.860, t-statistics of 19.393 and a p value of 0.000. Therefore, it can be concluded that H2 is supported. Consumer decision making is an integration process that combines knowledge to choose two or more alternative behaviors and one of them according to Setiadi. Purchasing decisions according to Buchari are consumer decisions that are influenced by financial economics, technology, politics, culture, products, prices, locations, promotions, physical evidence, people and processes, so the attitude on consumers to process all information and draw conclusions. about the responses that arise. What products to buy. The definition above can be said that purchasing decisions are a process of evaluation and consumer attitudes to process data into responses to make purchases.

Retaining customers as buyers, especially those who follow regularly and repeatedly (Ali Hasan 2013:123). Customers are people who consistently and repeatedly come to the same place to get what they want, buy a product or service and pay for that product or service. Loyalty is actually a pattern of repetitive, high-engagement and co-optation behavior, which begins with seeking external information and alternatively evaluating existing products. Customer loyalty is not built in a short period of time by consistently buying the results of the customer experience itself over time. This purchase process will repeat if the product you receive is as expected. It can be said that customer loyalty is born. If customers don't find the experience satisfying, they won't stop trying other brands until they get a product or service that meets their criteria. Increasing consumption and frequency of customer purchases of the company is the concept of loyalty.

The results of this study are supported by the results of respondents' responses to the purchase decision variables which showed an average value of 69.3656 which means that the majority of respondents agreed that Rejuve is the first healthy drink chosen and Rejuve is the best healthy drink product, because it is guaranteed to have 100% honest and transparent content, then Rejuve products are easy to get in big cities,  especially in Jakarta, Bogor, Depok, Tangerang, Bekasi or consumers can make purchases through the official Rejuve website.

 

Purchase Decisions mediate the effect of Sales Promotion with Customer Loyalty

Hypothesis 3 states that Purchase Decisions can mediate the influence between sales promotion and Customer Loyalty with a path coefficient of 0.008, t-statistics of 0.142 and a p value of 0.887. Therefore, it can be concluded that H3 is not supported. According to Jeremiah and Djurwati (2019: 833) said loyalty is a process, at the end of the process, satisfaction has an effect on perceived quality, which can have an impact on loyalty and intentions for certain behaviors of a customer. Brand loyalty refers to the behavior and patterns of repeat purchases that are characteristic of empirical research. Customers should not choose the same brand when buying the same car because brand loyalty influences a customer's purchasing decision, but not always. A very important factor that can influence a customer's purchase decision and bind it is the current price comparison, besides that in buying the same brand it is also necessary to pay attention to the quality of the car.

Brand is also described as a commitment to repeatedly buy the same brand, which is the primary definition of loyalty. Customers tend to prefer to buy their favorite brands and ignore competitors' brands. According to (Gunawan Kwan, 2016) sales promotion is a retailer promotion program, the goal is to drive sales or increase sales, or to keep customers interested and continue shopping. Sales promotion is a variety of offers and incentives given to buyers who aim to get certain responses (Diansyah, 2017). It is generally believed that brand loyalty encourages customers to buy the same brand regularly and prevents them from switching to another brand. Brand loyalty motivates consumers to buy the same brand on a regular basis and limit them to the same brand. This series of processes inevitably leads to brand equity, which further increases the company's sales and profits. Customer satisfaction and customer satisfaction motivate buyers to make positive purchasing decisions to buy the same product or brand from the same company, which is the goal of achieving brand loyalty.

The results of this study are supported by the results of respondents' assessment of the Customer Loyalty variable with an average of 67.2840 which means that most respondents agree that Rejuve is the first healthy drink they choose when buying for health desires. Drinks and Rejuve is a healthy drink brand that respondents always remember because Rejuve has many types of fruits and vegetables that can provide adequate nutrition and are important for body health.

 

CONCLUSION

The conclusions of the study entitled the effect of sales promotion on purchasing decisions on customer loyalty of Rejuve brand beverages in this study are (1) Sales promotion affects purchasing decisions with a path coefficient of 0.383, t-statistics 4.977 and p value of 0.000. (2) Purchase Decision affects Customer Loyalty with a path coefficient of 0.860, t-statistics of 19.393 and a p value of 0.000. (3) Purchase Decision can mediate the influence between sales promotion and Customer Loyalty with a path coefficient of 0.008, t-statistics 0.142 and p value of 0.887.

 

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