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All Journal The Journal of Management, Digital Business, and Entrepreneurship
Nayotama, A A Endra Danasura
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Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

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The Influence of Price and Product Quality on Home Purchasing Decisions Gayatri, Ni Putu Krishna Ananda Satya; Nayotama, A A Endra Danasura
The Journal of Management, Digital Business, and Entrepreneurship Vol. 1 No. 03 (2023)
Publisher : PT. Global World Scientific

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.58857/JMDBE.2023.v01.i03.p05

Abstract

This study examines the influence of price and product quality on home purchasing decisions. The population includes individuals or families planning to buy a house or who have purchased one in the last five years. Using purposive sampling, 36 respondents were selected based on the Slovin formula with a 5% margin of error. Data were gathered through a questionnaire employing a five-point Likert scale. Regression analysis revealed that price has a positive and significant effect on purchasing decisions (t = 13.936; p = 0.000), aligning with consumer behavior theory, which highlights price as a key factor—especially in the property sector. Similarly, product quality significantly affects home buying decisions (t = 3.021; p = 0.005), emphasizing the importance of elements such as materials, design, and facilities. The coefficient of determination (R² = 0.876) indicates that 87.6% of the variation in home purchasing decisions is explained by price and product quality, while the adjusted R² (0.868) confirms strong model reliability. These findings suggest that property developers should prioritize competitive pricing and quality improvements to align with consumer preferences and enhance market competitiveness.
Co-Authors Gayatri, Ni Putu Krishna Ananda Satya