The Effect Of Discounts And Word Of Mouth Communication On Purchasing Decisions At Src Al-Badar Wholesale Stores

Currently, the business world is very competitive, especially in Indonesia. This is shown by the increasing number of traditional businesses that are starting to transition to modern businesses, or perhaps new modern businesses. This study uses Quantitative Research, a research method that collects data in the form of numbers or numerical data to be analyzed statistically. The results of hypothesis testing show that the variable Price Discount, Word of Mouth simultaneously has a positive effect on consumer purchase decisions. From the partial results, the discount has a positive and significant effect on the purchase decision at the Al-Badr src graosir store. Simultaneously, discounts and word of mouth communication have a positive and significant effect on product purchase decisions at the Al-Badr src wholesale store.


INTRODUCTION
Currently, the business world is very competitive, especially in Indonesia.This is shown by the increasing number of traditional businesses that are starting to transition to modern businesses, or perhaps new modern businesses.Shifts and changes in market conditions also put pressure on retail entrepreneurs to change traditional retail business models to new, modern business models.Thus, the business in question becomes newer and more efficient.Unfortunately, today's technology requires sophisticated ways of communication, such as the use of technology to meet information and communication needs.The power of information systems allows business owners to offer new products, provide efficient, interactive and satisfying service delivery and maintenance to customers as a whole.
Technological advancements in business have made the consumer consumption system more complex, which may be due to the needs and desires of consumers to constantly change.The slight decline in sales is due to the increasing number of competing businesses, so the industry is increasingly competitive in attracting and retaining customers.Businesses use a variety of strategies to make customers feel valued and enthusiastic.The reason is that this phenomenon causes consumer behavior to become more rentable, meaning that every business targeted must be able to participate in daily life and meet the changing needs of customers.

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With the increase in retail sales growth in 2023, according to Kontain.co.id national retail growth in 2023 is predicted to touch 4% to 4.2%.This figure is higher than the growth in 2022 which is at a value of 3.8-3.9%.This shows an increase in retail sales compared to the previous year.The rapid development of the retail industry in Indonesia is shown by the number of retail stores in Indonesia today.The largest number of retail companies in Indonesia is in the province of West Java compared to other provinces, especially the island of Java.The high increase makes trade competition more intense, the changing desires of consumers become a company's obligation to know what is needed or what consumers want so that their needs are met.The increase in interest makes many new businesses and the competition becomes more fierce, in order to increase sales value and achieve sales targets.Business actors can carry out business strategies by innovating by presenting a neat layout to make it easier for consumers to shop, provide appropriate prices in competition, present discount concepts, and provide modern services.
Visitors to the SRC Al-Badar Shop experienced quite bad fluctuations from 2021 to 2023.The declining number of customers is due to the emergence of new and old retail stores near SRC Al-Badar, such as Alfamart, Indomart, Toko Kembar Bapak H. Didin, and Toko Indah Ibu Hj.With this development, it is difficult for customers to make decisions.If a retailer can increase customer loyalty and strengthen their trust in making purchases, then the number of sales made will also increase and consumer trust in the company will be stronger.In order to increase sales value and achieve sales targets, where enthusiasts make many new businesses and this becomes more intense.Business owners can use innovative business strategies by offering consumers a quick payback period to facilitate transactions, set reasonable prices for goods and services, implement the concept of price priority, or provide modern installment services.
Based on the increasing transparency of the retail industry, consumers will find it easier to choose retail products that suit their needs and expectations.The consumer concerned bears the responsibility in choosing a suitable store by paying attention to its condition and the goods in it, whether it meets customer needs or not.The store must be able to see the trust of its customers and meet their various needs as well as consider other factors to ensure that customers are satisfied with what they are buying.The application of consumer feedback to a business is called the product sales threshold, if many customers make purchases at the SRC AI-Badar store, the sales volume generated will also increase significantly.One of the most effective strategies in the business world includes discounts & word of mouth communication.Discounts are one of the strategies that are considered effective to be carried out in the business world.The purpose of holding discounts is to maintain the stability of money circulation and maintain consumer perception of trust in shopping at the store.According to (Novirsari, E., 2019) stated that "price discounts provide several advantages, including being able to trigger consumers to buy in large quantities, anticipate competitor promotions, and support trade in larger quantities".Furthermore, Word of Mouth is a form of marketing where consumers are in control and participate as marketers to influence and accelerate marketing messages (Ali Hasan, 2010).According to (A.Hamdani-Rambat Lupiyoadi, 2006), Word of Mouth is a form of promotion in the form of word-ofmouth recommendations about the goodness in a product.Word-of-mouth promotion strategies are used by companies to market their products because they have a very big influence on a person because the information obtained is considered real and honest.

Price Discount
Trade transactions always involve two parties, namely the buyer as the recipient of the goods and the seller as the party who delivers the goods.Before the transaction occurs, both parties must reach an agreement regarding the price of the goods being traded along with other conditions, including discounts on prices.Discounts are one of the ways that companies use to attract buyers to make purchase transactions.Definition of Discount according to (Zebua, M., 2018) "A price discount is a reduction from the actual price and is realized in cash or in the form of giving away goods."According International Journal of Social Service and Research https://ijssr.ridwaninstitute.co.id/IJSSR Page 1350 to (Tjiptono., 2019) "A discount is a discount given by a seller to a buyer as a reward for certain activities that the buyer does, such as paying bills faster, buying in bulk, or buying during off-season or peak demand periods."From the definition above, it can be concluded that a discount is a direct price reduction in a certain period with an agreement to display several types of products with the aim of pleasing consumers and attracting consumer buying interest.According to (Sutisna, 2002) Discount indicators are: (1) The high price of the discount, which is the discount given when the goods or products are discounted.(2) Discount period is the period of time given at the time of the discount.(3) The type of product that gets a discount is the variety of choices in the product that is given a discount.

Word of Mouth Communication
People often share information about their consumption experiences with people around them (Westbrook, R. A., 1987).This process, known as word-of-mouth, is an informal conversation between consumers about products and services (Schiffman and Kanuk, 2008).Consumers can share information and ideas through word-of-mouth communication, which allows them to direct others to specific brands, products, and services (Hawkins, Best, Coney, 2004).(Kotler & Keller., 2007) states that wordof-mouth communication (WOM) is a process of oral communication in the form of individuals or groups sending suggestions and recommendations about products and services, aiming to convey information in a personal way.(Nyoko & Semuel, 2021), divides the dimensions of e-WOM into three parts, namely: a. Intensity is the ability of consumers to provide information, interactions, and opinions with each other on social networking sites.Based on research (Adeliasari, Ivana, V., & Thio, S., 2010), the intensity of E-WOM can be measured using three indicators: (1) Frequency of accessing information on social networks.( 2 (2) price information provided on social networking sites; (3).Disseminate information about comfort, cleanliness, café services, etc. on SNS.Content is a stimulus that consumers receive and tends to be relevant to the context and situation of the consumer's environment.Therefore, e-WOM content affects consumer perception of products (Sangadji, 2013).

Purchase Decision
According to (Sergih, L., &MP; Vico J. Methods., 2020) A purchase decision is a decision as the choice of an action from two or more alternative options.In other words, in order for someone to make a decision, there must be alternative options available.Then according to (Kotler Philip, and Gary Amstong., 2012), "consumer buyer behavior refers to the buying behavior of final consumersindividuals and households that buy goods and services for personal consumption", this meaning can be interpreted that purchase decision behavior refers to the final purchasing behavior of consumers, both individuals, and households who buy goods and services for personal consumption.Based on the review, it can be said that the purchase decision is a problem-solving activity carried out by an individual when choosing a product/service to meet his needs between two or more options, and is considered the most appropriate activity in the purchase phase.The purchase decision can be interpreted as a human decision where he chooses one of several alternative options (Subagja, Se., Mm. & Istoto, 2018).According to (Kotler and Armstrong., 2008), the consumer purchase decision process has 5 stages of indicators, namely: 1. Problem recognition, 2. Information search, 3. Alternative evaluation, 4. Purchase decision, 5. Post-purchase experience.

Effect of Discounts on Purchase Decisions
Rebates are one of the tools of sales promotion.The existence of attractive sales promotions for consumers to buy the products offered (Peter, J. Paul dan Jerry, C. Olson., 1999).Price has two main roles in the decision-making process of buyers, namely the role of allocation and the role of information (S.Reni Yesi, 2020).The role of allocation and price is a function of price in helping buyers to decide how to obtain the highest expected benefit or utility based on their purchasing power.Thus, the existence of prices can help buyers to decide how to allocate their purchasing power to various types of goods and services.
Previous research conducted by (Rusni & Solihin, 2022) shows that discounts have a positive and significant effect on the purchase decision of IAIN Tulungagung Sharia Economics students using the Shopee application.Test results (Roviqoh, Tengku Syarifah., 2020) shows that price discounts have a positive and significant effect on purchase decisions.In other words, the discount variable is one of the variables that can be used to measure purchase decisions.Research based on statistical tests conducted by t-tests (Salim, Ahmad, and Riche Fermayani., 2021) shows that the price discount variable has a positive and significant influence on purchase decisions.

The Influence of Word of Mouth Communication on Purchase Decisions
According to (Kotler, philip & Keller, K.L., 2009), Word of Mouth Communication is a communication that refers to the provision of individual or group recommendations for products or services that aim to provide information personally.The ease of doing WOM without realizing it also increases the value of a product for others, WOM can influence purchase decisions more because information from friends will be more trustworthy and in this case the influence of individuals is stronger than information obtained from advertisements (Siswandi, R. A., & Djawoto, 2019).Based on research conducted by Sari et al. (Sari, N., Saputra, M., & Hussein, J., 2017) with the title "The Influence of Electronic World of Mouth on Purchase Decisions at Online Bukalapak.comStores".The purpose of this study is to determine the influence of electronic reviews on purchase decisions in bukalapak.com.This research is a type of quantitative research with a sample of 100 respondents.The sampling technique was purposive sampling, using a simple linear regression method to process sample data.The results of this study show the influence of Word-Of-Mouth Electronic on purchase decisions.

METHODS
This study uses Quantitative Research, a research method that collects data in the form of numbers or numerical data to be analyzed statistically.According to (Sugiyono, 2018) quantitative data is a research method based on positivism (concrete data), research data in the form of numbers that will be measured using statistics as a calculation test tool, related to the problem being researched to produce a conclusion.The research method uses a type of associative research that aims to find a relationship between two or more variables.So the researcher can find out the relationship between the independent variable, namely the discount (X1), WOM Communication (X2) and the dependent variable, namely the purchase decision (Y).This research aims to test the hypothesis that has been established and to find out the relationship between independent variables and related variables.This study has research objects, namely Price Discounts, WOM Communication and Purchase Decisions as the subject of the research.This study uses primary data.Primary data is data obtained directly from the object being researched without going through an intermediary, data is obtained from distributing questionnaires to respondents.
The data collection technique uses questionnaires, namely; The data collection technique was carried out by means of interviews, questionnaires, observations, and a combination of the three.(Suggestion, 2017).Because this study is quantitative, data from respondents obtained through questionnaires will be encoded using a Likert scale of 1-5.Statistical analysis will be carried out using the SPSS program.The collected data will go through several stages of analysis, including validity and reliability tests, classical assumption tests, and multiple linear regression analysis.A questionnaire can be said to be valid if the statement on the questionnaire is able to capture something that will be measured by the questionnaire, the more valid a research instrument, the more valid the data obtained.https://ijssr.ridwaninstitute.co.id/IJSSR Page 1352 (Suggestion, 2019).According to (Ghozali, I., 2018) "The reliability test is a measuring tool to measure a questionnaire which is an indicator of a variable or construct.A questionnaire is said to be reliable or reliable if one's answers to questions are consistent or stable over time."(Ghozali, I., 2018) states that "the multicollinearity test aims to test whether in the regression model there is a correlation between independent variables."The heterokedasticity test aims to test whether in the regression model there is an inequality of variance from one residual observation to another observation is different, so it is called heteroscedasticity (Noya et al., 2020).The statistical test F is basically used to determine whether all the independent variables included in the model have a joint influence on the bound variables.The test was carried out by comparing the value of Fcal with Ftabel at a significance level of 5% (α = 0.05).The null hypothesis (H0) will be rejected and the alternative hypothesis (H1) is accepted if Fcalcul > from the Ftable for α = 5%.

Validity and Reliability Test Discount (x1)
The significance value of < 0.05 is concluded to be valid The significance value of > 0.05 concluded to be invalid According to (Sugiyono, 2019) an item is said to be reliable if the value of Cronbach Alpha > 0.6 Crobach's Alpha value from the discount of 0.729 is more than > 0.06, then it is said to be reliable.

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The significance value of < 0.05 is concluded to be valid The significance value of > 0.05 concluded to be invalid The Validity Test of the discount has a significance value of > 0.05 which means that there is a positive influence According to (Sugiyono, 2019) an item is said to be reliable if the value of Cronbach Alpha > 0.6 Crobach's Alpha value from the discount of 0.731 is more than > 0.06, then it is said to be reliable.According to (Sugiyono, 2019) an item is said to be reliable if the value of Cronbach Alpha > 0.6 Crobach's Alpha value from the discount of 0.785 is more than > 0.06, then it is said to be reliable.The results of the F test simultaneously show a value of F of 63,885 while the value of Ftable with n-k = 91 -3 = 88 is 2.71 Therefore, the value of Fcal is 63,885 > the table F is 2.71 Then H1 is accepted.

Discussion The Effect of Discounts, Word of Mouth Communication on Purchase Decisions
The results of hypothesis testing show that the variable Price Discount, Word of Mouth simultaneously has a positive effect on consumer purchase decisions.This means that every change in the Purchase Decision has the effect of the Discount and Word of Mouth Communication

Effect of Discounts on Purchase Decisions
The results of hypothesis testing show that the Rebate variable partially has a positive effect on the Purchase Decision.

The Influence of Word of Mouth Communication on Purchase Decisions
The results of hypothesis testing show that the Word of Mouth Communication variable partially has a positive effect on Purchase Decisions.Of the 100 respondents, the average answer was yes.

CONCLUSION
From the results of the discussion, it was concluded that partial discounts had a positive and significant effect on purchase decisions at the Al-Badr src graosir store.Partially, word of mouth communication has a positive and significant influence on purchasing decisions at the Al-Badr src wholesale store.Simultaneously, discounts and word of mouth communication have a positive and significant effect on product purchase decisions at the Al-Badr src wholesale store.The suggestion from the results of this study is that the competition in the retail business is getting tighter with the emergence of competitors who have similar businesses, it is hoped that the Al-Badar src wholesale store can always retain consumers by providing stable prices that are affordable so that consumers do not turn to similar competitors.The Al-Badar src wholesale store can also provide discount promos if you buy in large quantities or packages so that it can be attractive to consumers.In addition, the Al-Badar ) the frequency of interaction between social network users; (3) The number of reviews written by social network users.b.Valence of Opinion is consumer interest in a product by buying the product based on the opinions and recommendations of other consumers.Opinion value index based on research (Adeliasari, Ivana, V., & Thio, S., 2010), the Valence of Opinion indicators are: (1) Positive comments from social network users.(2) Consumer recommendations from social networks.(3) negative comments from social network users.c.Content is information about quality, price, comfort, cleanliness, café services, and others that consumers buy.The following content metrics are based on research (Adeliasari, Ivana, V., & Thio, S., 2010): (1) Quality information of cafes on SNS.
Journal of Social Service and Research https://ijssr.ridwaninstitute.co.id/IJSSR Page 1354The significance value of < 0.05 is concluded to be valid The significance value of > 0.05 concluded to be invalid The Validity Test of the discount has a significance value of > 0.05 which means that there is a The Validity Test of the discount has a significance value of > 0.05 which means that there is a positive

Heterokedacity Test Collineari ty Diagnosti cs a
If the tolerance value is greater than > 0.010, it means that there is no multicolliearity If the VIF value is less than < 10.00, it means that there is no multicolliery The tolerance value in the table is 0.739 VIF value in table 1,353

International Journal of Social Service and Research https
://ijssr.ridwaninstitute.co.id/In the figure above, it can be seen that the graph shows a normality test depicting the distribution of data around the diagonal line and its distribution follows the direction of the diagonal line of the graph, so the regression model used in this study meets the assumption of normality.Heterokedasticity

Classical Assumption Test Collineari ty Diagnosti cs a
The image above shows the graph used for the heteroscedasticity test, where the dots are scattered randomly and do not show a clear pattern.This indicates that there is no heteroscedasticity.0.649 < 0.05.