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ANALYSIS OF THE EFFECT OF PUBLIC RELATION AND SALES PROMOTION ON DECISION MAKING PROCESSES FOR BUYING WATER REFILLS IN MERAUKE

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International Journal of Mechanical Engineering and Technology (IJMET)
Volume 10, Issue 03, March 2019, pp. 759-765. Article ID: IJMET_10_03_079
Available online at http://www.iaeme.com/ijmet/issues.asp?JType=IJMET&VType=10&IType=3
ISSN Print: 0976-6340 and ISSN Online: 0976-6359
© IAEME Publication
Scopus Indexed
ANALYSIS OF THE EFFECT OF PUBLIC
RELATION AND SALES PROMOTION ON
DECISION MAKING PROCESSES FOR BUYING
WATER REFILLS IN MERAUKE
Semuel Batlajery and Marlyn Alfons
Universitas Musamus, Merauke, Indonesia
ABSTRACT
This study aims to analyze the relationship between public relations and sales
promotion to the decision-making process of buying refill water. The population and
sample in this study were 41 respondents. Observations, questionnaires, interviews,
data analysis techniques using multiple regression analysis. Then the data is
processed using SPPS version 23. From the results of the analysis of the research
obtained, it shows that public relations has a significant effect on the decision-making
process of buying refill water, which is proven by a significant value of 0,000 <0.05.
Sales promotion has a significant effect on the decision-making process of buying
omega water brand refill water, this is evidenced by a significant value of 0.002
<0.05. Public relations and sales promotions on the decision-making process of
buying refilled water from the omega water Merauke brand. This is evidenced by a
significant value of 0,000 <0,05. The adjusted r square number of 53.2% shows that
the influence of public relations and sales promotions on the decision-making process
buys refill water, while 46.8% is explained by other variables not examined in this
study.
Keywords: Public Relations, Sales Promotion, Decision Processes
Cite this Article Semuel Batlajery and Marlyn Alfons, Analysis of the Effect of
Public Relation And Sales Promotion on Decision Making Processes For Buying
Water Refills in Merauke, International Journal of Mechanical Engineering and
Technology, 10(3), 2019, pp. 759-765.
http://www.iaeme.com/IJMET/issues.asp?JType=IJMET&VType=10&IType=3
1. INTRODUCTION
In the current globalization and modern era, the development of information technology is
increasingly rapidly, this has an impact on the increasing demand for various types of
communication devices that have resulted in increasingly competitive competition for market
share in the world of business in the telecommunications sector. The development of science
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Analysis of the Effect of Public Relation And Sales Promotion on Decision Making Processes For
Buying Water Refills in Merauke
and technology is increasingly expanding free trade as if trade has become unlimited in space
and time.
Public relations is the process of interaction where public relations creates public opinion
as an input that benefits both parties, and instills understanding, fosters motivation and public
participation, aims to instill good wishes, trust mutual understanding, and a good image of the
public. Public relations is a special function of management that helps build and maintain
joint communication, understanding, support, and collaboration between organizations and
the public, involves management problems, helps management to know and respond to public
opinion, explains and emphasizes management's responsibility to serve public interest, helps
management to keep abreast of and utilize change effectively, useful as an early warning
system to help anticipate trends, and use sound research and sound techniques in
communication as the main tools (Maria, 2002).
Public Relations and Publicity are various programs that are directed internally to
employees of companies or outside consumers, other companies, governments, and the media
to promote, build relationships between companies and the public, protect and build a
company image or positive individual communication products. Public Relations.
Management comes from managing words which means leading, handling, managing, or
guiding (Ruslan, 2014: 1). Management in the context of strategy has a role to help
companies adjust to changes in the business environment. Environmental changes certainly
affect the company's performance in gaining profits or contributing to the parties involved.
Sales promotion is one element of the marketing mix, in addition to selling prices,
products, and distribution. Promotion is very influential on the company's efforts to achieve
maximum sales volume, because even though the product offered is good, relatively cheap
and easy to obtain, if it is not accompanied by good promotion, then the level of sales will not
be enough. According to Lupiyoadi (2014: 178) promotional devices that we know include
advertising, individual sales, promotion promotion, public relations, word of mouth
information, direct marketing, and marketing publications.
A certain type of product requires certain forms of sales promotion and other types of
promotions must also be used in other forms of sales promotion. In other words, not all forms
of sales promotion can match and guarantee the success of the promotion if it is not in
accordance with the conditions of a product. Therefore, a form of sales promotion must be
sought that is in accordance with the conditions of the product to be promoted. Promotion
according to Kotler and Armstrong (2014: 77): Promotion is an activity that communicates
product excellence and persuades customers to buy the product.
Process Decision making is an event that is often experienced in human life. The process
of decision making is a logical consequence in human life that is always changing and
experiencing improvement. The decision making process is one form of human response to
the environment (Samudro & Mangkoedihardjo, 2012). Decisions taken by humans will be
the beginning of the determination of the next life. And so there is a connection between the
decision making process and human life. The level model of the process of making consumer
purchasing decisions through five stages, namely: Introduction to the Problem, Information
Search, Alternative Evaluation, Purchase Decision for Post-Purchase Behavior. Kotler and
Keller (2012: 189).
According to U.S. Munandar (2010), the decision-making process starts based on the
existence of a problem between the desired condition and the conditions in which 25 desired
conditions are usually influenced by: 1) Culture 2) Reference groups, changes in groups can
change desired things 3). Family characteristics 4). Status or financial expectations 5).
Previous decisions affect the introduction of problems. 6). Individual development can affect
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Semuel Batlajery and Marlyn Alfons
the desired condition, one's maturity affects the choice. 7). The current individual situation.
One example of decision making is when people choose Omega Water Brands. So the choice
of society is CV. Sion Merauke with the brand name Omega Water packaging that is engaged
in replenishing drinking water has moved from 2016 to 2019 is a new business and competes
with other competitors who have long been in Merauke. Like aqua, and many more. And as a
consideration of CV sales data. Zion last 3 years like the table 1 below:
Table 1. Sales Data For The Last 3 Years
No
1
2
3
Year
2016
2017
2018
TOTAL
Data sales
2425
2880
2599
7904
Percentage
31%
36%
33%
100%
Data processed:2019
Based on table 1 above the sales data of the last 3 years up and down, in 2016 decreased
by 31% and in 2018 it decreased by 33% while in 2017 it increased by 36%. Due to various
problems encountered, namely CV. Zion with the brand name Omega Water packaging, like
in 2016/2018 CV. Sion does not build good relations with the community, does not provide
promotions either through Bhalio, brochures, word of mouth, home-to-home. but in 2017 CV.
Sion brings promotional sales personnel from outside the region to carry out promotions from
house to house and the results are very good, namely a 36% increase in sales. But it was
inconsistent so he experienced deterioration the following year. In the case we know that sales
promotion is one form of activity using props such as: demonstrations, exhibitions,
demonstrations, gifts, examples of goods and so on to influence the community to buy Omega
Water Brands. According to Malau, Herman (2017: 103), "Sales promotion is a form of direct
persuasion through the use of various incentives that can be arranged to stimulate product
purchases immediately and / or increase the amount of goods purchased by customers".
Through sales promotion, companies can attract new customers, encourage customers to buy
more, attack competitors' promotional activities, increase impulse buying (purchases without
prior plans), or strive for closer cooperation with retailers.
The results of research conducted by Desi Novita Sari et al. (2018) that the influence of
public relations and advertising strategies on purchasing decisions with the results of the
study showed that: (1) public relations purchasing decisions are influenced positively by the
significance value of the t-test is smaller than the level determined significance (2) advertising
strategy is positively influenced by purchasing decisions with a significant value of t-test
smaller than the specified level of significance (3) public relations and strategic advertising
together with positively-influenced purchasing decisions with a significant value of f-test
smaller than specified level of significance. So that this study aims to determine the Analysis
of the Effect of Puplic Relations and Sales Promotion on the Decision Making Process of
Buying Water Refill the Brand of Omega Water in Merauke.
2. METHODOLOGY
The time needed to carry out this research is for 2 months, the research site at CV. Zion
Merauke. Types and sources of data: Observations, Questionnaires, interviews and
Bibliography, Populations and samples 41 respondents. According to Suharsimi Arikunto
(20013: 108) "Samples are partially or representative of the population studied. If the subject
is less than 100 it's better to take everything. incidental technique is to determine based on
coincidence, that is, anyone who accidentally met with the researcher. Data analysis
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Analysis of the Effect of Public Relation And Sales Promotion on Decision Making Processes For
Buying Water Refills in Merauke
technique: multiple regression analysis. Operational definition: Pulic relation variable (X1),
Sales Promotion variable (X2), Decision-making process variable (Y) and then the data is
processed using SPPS version 23.
3. RESULTS
3.1. Linear regression analysis
Based on the calculation of multiple regression between Public relations (X1), Sales
Promotion (X2) to the Decision of students choosing school (Y) with the help of SPSS 23
program in the calculation table 2 results can be obtained as follows. Based on the table, the
regression equation formed in this regression test uses the formula Y = a + b1X1 + b2X2 + e.
So the regression equation is Y = 1.338 + 0.446X1 + 0.458X2 + e.
Table 2. Multiple regression coefficients
Model
1
(Constant)
Prtotal Sptotal
Unstandardized Coefficients
Standardized
Coefficients
T
Sig.
.401
.690
B
Std. Error
Beta
1.338
3.334
.446
.100
.518
4.462
.000
.458
.140
.381
3.280
.002
a. Dependent Variable: kstotal
3.2. Test t
Analysis of the effect of Public relations on the decision-making process of buying omega
water brand refill water. From the calculation results obtained by the value of t arithmetic for
public relations variable is equal to 4.462 and by using lavel significance (significant level) of
5% obtained by t table of 1.684 which means that the value of t count is greater than the table
namely 4.462> 1.684. While the sig value in table B is 0,000 because sig is smaller than 0.05,
which indicates that public relations (X1) has a positive and significant influence on the
process of buying water refills for omega water brands. People choose the brand omega water
(Y).
Analysis of the influence of sales promotion on the process of deciding to buy water refill
on omega water brands. From the calculation results obtained by the value of t count for Sales
Promotion variable is 3.280 and by using lavel significance (significant level) of 5% obtained
t table of 1.684 which means that the value of t count is greater than the table, namely 3.280>
1.684. While the sig value in table B is 0.002 because sig is smaller than 0.05, which indicates
that (X1) can have a sales promotion that has a positive and significant influence on the
process of deciding to buy water refill for omega water brands. (Y). Thus it can be concluded
that Ho and Ha are accepted so that the hypothesis that the Sales Promotion has a positive
influence on the process of deciding to buy refill water brand omega water is accepted.
3.3. Test f
To find out the magnitude of the analysis of the influence of public relations and sales
promotions on the decision process of buying refilled water from the omega water brand
together can be seen from the magnitude of the value of f as follows.
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Semuel Batlajery and Marlyn Alfons
Table 3. Simultaneous
Model
1
Regression
Residual Total
Sum of Squares
D
Mean Square
F
Sig.
217.997
2
108.999
23.744
.000
174.442
38
4.591
392.439
40
b
a. Dependent Variable: kstotal
b. Predictors: (Constant), pptotal, prtotal
By using the level of significance (significance level) of 5% obtained F-table 2.85. Where
F-table is obtained from dfl = k-1 (3-1) = 2 with df2 = n-k (41-2) = 39 which means that the
calculated F value is greater than F-table which is 23,744> 2,85. While the sig value in the
table of 0,000 is smaller than 0.05 indicating that the public relation variable (X1) and sales
promotion (X2) have a simultaneous or joint effect on the variables of the decision process to
buy water refill for omega water brands. Thus it can be concluded that Ha is accepted and Ho
is accepted so that the hypothesis which states Public relations and sales promotion together
have a positive and significant effect on the process of deciding to buy water refill for omega
water brands. be accepted.
Table 4 : Determination Coeficients Model Summary
Model
R
R Square
Adjusted
R
Std. Error of the
Estimate
1
.745a
.555
.532
2.143
a. Predictors: (Constant), pptotal, prtotal b. Dependent Variable: kstotal
Based on table 4 above, it can be seen that the magnitude of the determination coefficient
is indicated by the adjusted R Square value which is equal to 0.532 which means that
variations of all independent variables namely public relations and sales promotion can
explain the variable decision process to buy water refill brand Omega water by 53, The
remaining 2% 46.8% is explained in other variables that were not submitted in this study.
4. DISCUSSION
4.1. Analysis of the influence of public relations
Based on the results of hypothesis testing and regression analysis shows that the public
relations variable has a significant influence on purchasing decisions and the effect is positive.
This shows that an increase in public relations in a company's strategy will encourage
consumers to decide to buy the products offered. Research shows that Public Relations have a
significant effect on purchasing decisions. This means that any increase in Public Relations,
the decision to purchase Samsung S5 Mobile products will increase. And vice versa if the
Public Relations has decreased then consumer purchasing decisions will decline as well. This
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Analysis of the Effect of Public Relation And Sales Promotion on Decision Making Processes For
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study can be explained that specifically for product purchases it turns out consumers consider
the Public Relations in making product purchase decisions. So the hypothesis that says the
influence of the Public Relation on the process of deciding to buy refill water for Omega
Water, is accepted.
4.2. Analysis of the influence of sales promotions
Based on the results of hypothesis testing and regression analysis shows that the sales
promotion variable has a positive and significant influence on the process of deciding to buy
water refill brand omega water (Y). The results showed that the results of the regression
equation analysis were Y = 6.073 + 0.459X. The direction of the relationship is in the
direction of being positive so that when the sales promotion variable rises, the process of
consumer purchasing decisions will also rise. Pearson product moment correlation, obtained r
value of 0.574 because rs is between 0.40 - 0.599, the relationship between sales promotion
and the process of purchasing decisions can be said to be moderate and in the same direction.
So that the results of the hypothesis test which says that there is an effect of sales promotion
on the process of deciding to buy water refill with the brand Omega Water, are accepted.
4.3. Analysis of the influence of public relations and sales promotion
Based on the results of testing the hypothesis that the variables Public Relation and Sales
Promotion have a significant effect on the process of deciding to buy water refill the brand of
Merauke Omega Water. Test results (F Test) with a significant level (Sig) is 0.05 with Fcount
355.109 greater than Ftable 0.197 with significant level of 0.000 then Ha is accepted. This
means that public relations and advertising have an influence on purchasing decisions. So that
the results of the hypothesis test which states the influence of public relations and sales
promotion have a positive and significant effect on the process of deciding to buy water refill
the brand of Omega Water Merauke. Thus Ho is rejected and Ha is accepted.
5. CONCLUSIONS
Based on the results of analysis and testing of data and hypothesis testing about the analysis
of the effect of puplic relations and sales promotion on the decision making process of buying
water refill Omega brand Merauke Water, conclusions can be drawn as follows: 1). Public
Relation partially has a positive and significant effect. This is evidenced by the value of t
count greater than t table which is 4.462> 1.684 with a significance level of 0.000 <0.05. Thus
Ho is rejected and Ha is accepted. 2). Partial sales promotion has a positive and significant
effect, evidenced by the value of t count greater than t table which is 3.280> 1.684 with a
significance level of 0.002 <0.05. Thus Ho is rejected and Ha is accepted. 3). Simultaneously
the variables public relation and sales promotion have a positive and significant influence,
evidenced by the value of t count greater than f table which is 23.744> 2.85 and with a
significance level of 0.000 <0.05. Thus Ho is rejected and Ha is accepted.
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