Granthaalayah

ANALYSIS OF THE EFFECT OF CUSTOMER BUYING INTENTION ON THE SELECTION OF THE NEW NORMAL KIT IN THE COVID-19 PANDEMIC

 

Golan Hasan 1Icon

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1, 2 Faculty of Economic, University International Batam, Batam City, Indonesia

 

 

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Received 17 December 2021

Accepted 4 January 2022

Published 31 January 2022

Corresponding Author

Richart,

richarttzheng@gmail.com

DOI 10.29121/granthaalayah.v10.i1.2022.4480

Funding: This research received no specific grant from any funding agency in the public, commercial, or not-for-profit sectors.

Copyright: © 2022 The Author(s). This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.

 

 

 


 

ABSTRACT

 

This study aims to analyze the effect of Health benefit, Brand Quality, Brand Trust, and Price by mediating Perceived Value on Buying Intention. according to the requirements in the known population of 1.1 million people have visited, then based on Krejcie and Morgan table, the number of samples that must be required is 384 respondents. The data used in this study were 384 respondents. Results obtained from the Partial Least Square (PLS) approach for data analysis it is said that the Health Benefit variable has a significant effect on Perceived value, as well as Brand Quality, Brand Trust, Price variables which also have a significant effect on Perceived value. and then also has a significant effect on the perceived value variable on buying intention, as well as the health benefit variable with price which also has a significant effect on buying intention.

 

Keywords: Health Benefit, Brand Quality, Brand Trust, Price, Perceive Value, And Buying Intention

 

1. INTRODUCTION

         In the last two decades, there have been outbreaks of diseases that infect human respiratory tract which can lead to death, so that it is seen as one of the serious dangers for global health. In 2002, the emergence of a viral disease named SARS-CoV had a very dangerous impact on global health. Then in 2012 the emergence of a viral disease named MERS-CoV which also greatly affects human health. In early December 2019, a case of pneumonia with unknown reasons appeared in Wuhan City, Hubei, in China. It was stated that a deadly virus called the Corona Virus or COVID-19 had emerged He and Harris (2020).  COVID-19 causes infection in human respiration which causes shortness of breath which can lead to death. COVID-19 is spreading rapidly in such a manner that as of March 16, 2020, it is known that there have been 180,000 confirmed cases of COVID-19 worldwide, with more than 7000 deaths. This COVID-19 is spreading rapidly to all countries causing an increasing infection rate and also an increasing death rate. The outbreak of the COVID-19 virus has spread throughout the world and the State of Indonesia is also one of the countries affected by COVID-19. On March 19, 2020, it was stated that Indonesia had many patients infected with COVID-19 and also the percentage of deaths of COVID-19 patients in Indonesia was increasing.

 

 


 

Table 1 Number of Covid-19 Cases in Asian Countries 2020

Country

Total Confirmed case

Total New Case

Total Death

Total New Death

South East-Asia Region

Thailand

2518

45

35

2

India

7447

1035

239

40

Indonesia

3512

0

306

0

Srilanka

197

7

7

0

Bangladesh

424

94

27

6

Maldives

19

0

0

0

Myanmar

28

1

3

0

Nepal

9

0

0

0

Bhutan

5

0

0

0

Timor-Leste

2

1

0

0

Subtotal

14161

1183

617

48

Source : (Kompas.com 2020) Indonesia

 

In preventing the transmission of the COVID-19 virus, the Government has also implemented healthy living and health protocols that must be adhered to by the community in order to reduce the percentage of the risk of contracting the COVID-19 virus in their daily lives and activities. The government urges the public to always wash their hands, use the New Normal Kit such as hand sanitizers, masks, and do social distancing. This is a Health Protocol that must be adhered to by the Indonesian people in order to prevent the possibility of spreading the COVID-19 virus Spinelli and Pellino (2020). because it is the community's obligation to always maintain cleanliness and wear masks and New Normal Kit equipment, this causes the level of public demand for masks and other health equipment to increase. To meet the needs of public health, there are so many New Normal Kits that have their own brands that can meet the needs of the community in undergoing health protocols. The use of the New Normal Kit during the COVID-19 pandemic has triggered an increasing number of New Normal Kit products with different brands. So that the community can make decisions in choosing the health equipment they want to meet their health needs in undergoing health protocols.

 

2. LITERATURE REVIEW

Health Benefit on Perceived Value

Han and Hwang (2013) stated that the effect of Health Benefit on Perceived Value has a result that states it has a significant effect. This statement is also supported by Chen and Hu (2010). which also has research results showing that Health Benefit has a significant effect on Perceived value. Research conducted by Konuk (2018). The statement states that Health benefits can make consumers feel that they are getting more benefits.

H1: Health Benefit has a significant positive effect on Perceived value

 

Brand Quality with Perceived Value

Chen and Chen (2010) states that the level of profit received by consumers is significantly influenced by brand quality. This statement is also supported by Dewi (2020) with the results of his research which states that quality has a significant effect on perceived value. The research conducted Coelho et al. (2020), states that quality has a significant effect on the benefits received by consumers.

H2: Brand Quality has a significant positive effect on Perceived value

 

Brand Trust with Perceived Value

Ruan et al. (2020) stated that the influence of Brand trust on Perceived Value has results which state that it has a significant effect. This statement is also supported by Choi and Lee (2019), who also have research results showing that trust has a significant effect on Perceived value. The research conducted by Chae et al. (2020), states that consumer trust in a brand creates a value that is accepted by consumers.

H3: Brand Trust has a significant positive effect on Perceived value

 

Price with Perceived Value

Pandey et al. (2020) said that the relationship between Price and Perceived Value had a result which stated that it had a significant effect. This statement is also supported by García-Acebrón et al. (2010) which also has research results showing that the price of a product has a significant effect on the perceived value received by consumers. The research conducted by Ali and Bhasin (2019) states that the right price can make consumers feel that they get more benefits.

H4: Price has a significant positive effect on Perceived value

 

Perceived Value to Buying Intention

García-Acebrón et al. (2010)states that the value received by consumers has a significant effect on consumers' purchase intentions. This statement is also supported by Ali and Bhasin (2019) who also have research results showing that Perceived Value has a significant effect on Buying Intention. The research conducted by Pandey et al. (2020) states that the benefits received by consumers will be a factor that influences their purchase intentions.

H5: Perceived Value has a significant positive effect on Buying Intention

 

Health Benefit with Buying Intention

Huang et al. (2020) stated that the health benefits perceived by consumers had an effect on purchase intentions. This statement is also supported by Tudoran et al. (2009) which also has research results showing that Health benefits have a significant effect on Buying Intention. The research conducted by Bower et al. (2003) states that Health Benefit is one of the factors that influence consumer buying intentions.

H6: Health Benefit has a significant positive effect on Buying Intention

 

Price with Buying Intention

Alford and Biswas (2002) stated that the influence of Price on Buying Intention has a result which states that it has a significant effect. This statement is also supported by Lien et al. (2015) which also has research results showing that Price has a significant effect on Buying Intention. The research conducted by Katt and Meixner (2020) states that price is one of the factors that significantly influences consumers' purchase intentions.

H7: Price has a significant positive effect on Buying Intention

 

Figure 1 Effect of Health Benefit, Brand Quality, Brand trust, Price, and Perceived value on Buying Intention

 

3. RESEARCH METHODS

This research methodology uses sample data collection techniques carried out through surveys by utilizing digital in the form of questionnaires distributed online to get responses from respondents who are residents of Batam City, totaling 1.1 million people, which is then based on Krejcie and Morgan table, the number of samples or respondents who must be accepted as many as 384 respondents. Then the data generated from 384 respondents was processed through a partial Least Square (PLS) approach for data analysis. The object taken in the survey is the New Normal Kit with the brands of Dettol, Nuvo, Sensi, Antis and Grace. In an effective data collection process, namely through the distribution of questionnaires to respondents to find out the response of the target respondents to find data regarding the New Normal Kit chosen by the Batam City Community during the Covid-19 Pandemic.

 

4. RESULT AND DISCUSSION

The demographic data below are obtained from the results of distributing online questionnaires to 384 respondents from the Batam City community through the distribution of online links.

Table 2 Characteristic of Respondent

Variable

Amount

Percent

Gender

Male

208

54,2

Female

176

45,8

Age

17-25 Years

347

90,4

26-35 Years

27

7

Education

High School

311

81

Bachelor's degree

65

16,9

Master's degree

6

1,6

Doctor's degree

2

0,5

Income per Month

Below Rp. 4,000,000

102

26,6

Rp. 4,000,000 - Rp. 6,000,000

236

61,4

Rp. 6,500,000 - Rp. 8,500,000

36

9,4

Above Rp. 8,500,000

10

2,6

Favorite New Normal Kit Brand

Nuvo

123

32

Sensi

125

32,6

Dettol

95

24,7

Grace

41

10,7

Source: Primary Data Processed (2022)

 

Based on the results of the data collected, the conclusions from the results of the table above are as follows:

1) The result of the majority of Male respondent were 208 respondent (54.2%).

2) The result of the majority of respondent aged 17 – 25 Years were 347 respondent (90.4 %).

3) The result of the majority of high school education respondent were 311 respondent (81%).

4) The result of the majority of respondent who earn Rp. 4.000.000 – Rp. 6.000.000 per month were 236 respondent (61.4%).

5) The result of the majority of Sensi that was respondent favorite New Normal Kit Brand were 125 respondent (32.6%).

 

The number of questions distributed through questionnaires is data obtained from previous research, all variables have 4 questions Sumi and Kabir (2018), Because there are 6 variables, a total of 24 questions are formed Jalilvand et al. (2011).

 

5. CMB TEST (COMMON METHOD BIASES)

From the analysis of the SPSS 24.0 program, the result of the variance value is 46% which means the result is less than 50%, it means that there is no common method bias in this research.

 

6. VALIDITY AND RELIABILITY TEST

in testing the data in this study using the PLS system which can test the validity and reliability data which can be determined from the outer loading value of each indicator whose value exceeds 0.6. then validity can also be determined through the value of Average Variance Extracted (AVE) which must show the value of each variable that exceeds 0.5. then the results will be declared significant if the results of the processed data show a t-statistic value more than 1.96 or a P-value below 0.05.

Table 3 Summary of Validity Test Result

Variable

Indicator

Loadings

AVE

Buying Intention

BI1

0.716

0.691

BI2

0.927

BI3

0.750

BI4

0.910

Brand Quality

BQ1

0.743

0.549

BQ2

0.898

BQ3

0.857

BQ4

0.321

Brand Trust

BT1

0.915

0.634

BT2

0.829

BT3

0.911

BT4

0.424

Health Benefit

HB1

0.853

0.670

HB2

0.751

HB3

0.838

HB4

0.827

Price

P1

0.870

0.697

P2

0.797

P3

0.893

P4

0.774

Perceived Value

PV1

0.874

0.695

PV2

0.753

PV3

0.822

PV4

0.880

Source: Primary Data Processed (2022)

 

In the Cronbach's Alpha test if the test results show a value above 0.05 then the data can be declared reliable and if Composite Reliability shows results that have a value that exceeds 0.7, then the data table can be declared reliable.

Table 4 Reliability Test Result

Variable

Composite Reliability

Cronbach's Alpha

Brand Quality

0.815

0.701

Brand Trust

0.866

0.788

Buying Intention

0.898

0.847

Health Benefit

0.890

0.835

Perceived Value

0.901

0.853

Price

0.902

0.854

Source: Primary Data Processed (2022)

 

based on the results above, shows the results of reliability and can it is said that all questions have a composite reliability above 0.7 so that declared reliable.

 

7. INNER MODEL TEST (STRUCTURAL MODEL)

Path Coefficient Test

A relationship can be said to be significant with a significance level of 5%, if it has P-values ​​below 0.05 or T-statistics more than 1.96. This test uses the path coefficient test and specific indirect effects.

Table 5 Summary of Path Coefficients Test Result

Variable

T-Statistic

P-Value

Explanation

Brand Quality-> Percevied Value

2.814

0.006

Significant

Brand Trust-> Perceived Value

2.389

0.002

Significant

Health Benefit-> Buying Intention

2.896

0.004

Significant

Health Benefit-> Perceived Value

13.664

0.000

Significant

Perceived Value-> Buying Intention

6.518

0.000

Significant

Price-> Buying Intention

5.353

0.000

Significant

Price-> Perceived Value

2.611

0.009

Significant

Source: Primary Data Processed (2022)

 

Hypothesis 1

H1 : Health Benefit Affects Perceived Value

The results of the direct influence test in the table above show the Health Benefit variable The Perceived Value has a significant effect as seen from the tstatistics value of 13.664 and with a P-Value of 0.000. The results of this test are in line with research from Chen and Hu (2010) and Han and Hwang (2013).

 

Hypothesis 2

H2 : Brand Quality Affects Perceived Value

The results of the direct influence test in the table above show the Brand Quality variable The Perceived Value has a significant effect as seen from the tstatistics value of 2.814 and with a P-Value of 0.006. The results of this test are in line with research from Chen and Hu (2010) and Coelho et al. (2020).

 

Hypothesis 3

H3 : Brand Trust Affects Perceived Value

The results of the direct influence test in the table above show the Brand Trust variable The Perceived Value has a significant effect as seen from the tstatistics value of 2.389 and with a P-Value of 0.002. The results of this test are in line with research from Chae et al. (2020) and Ruan et al. (2020).

 

Hypothesis 4

H4 : Price Affects Perceived Value

The results of the direct influence test in the table above show the Price variable The Perceived Value has a significant effect as seen from the tstatistics value of 2.611 and with a P-Value of 0.009. The results of this test are in line with research from Pandey et al. (2020) and García-Acebrón et al. (2010).

 

Hypothesis 5

H5 : Perceived Value Affects Buying Intention

The results of the direct influence test in the table above show the Perceived Value variable The Buying Intention has a significant effect as seen from the tstatistics value of 6.518 and with a P-Value of 0.000. The results of this test are in line with research from Pham et al. (2018) and Jalilvand et al. (2011).

 

Hypothesis 6

H6 : Health Benefit Affects Buying Intention

The results of the direct influence test in the table above show the Health Benefit variable The Buying Intention has a significant effect as seen from the tstatistics value of 2.896 and with a P-Value of 0.004. The results of this test are in line with research from Jalilvand et al. (2011) and Tudoran et al. (2009).

 

 

 

Hypothesis 7

H7 : Price Affects Buying Intention

The results of the direct influence test in the table above show the Price variable The Buying Intention has a significant effect as seen from the tstatistics value of 5.353 and with a P-Value of 0.000. The results of this test are in line with research from Sumi and Kabir (2018) and Calvo-Porral and Lévy-Mangin (2017).

Table 6 Indirect Effect Test Result

Variable

T-Statistic

P-Value

Explanation

Brand Quality-> Buying Intention

1.485

0.138

Not Significant

Brand Trust-> Buying Intention

1.256

0.210

Not Significant

Health Benefit-> Buying Intention

5.020

0.000

Significant

Price-> Buying Intention

2.589

0.010

Significant

Source: Primary Data Processed (2022)

 

This test shows that the Brand Quality variable has an indirect effect on Buying Intention showing a t-statistic value of 1.485 and a p-value of 0.138, so it can be stated that it has no significant effect on advertising, as well as the brand trust variable that has an indirect effect on buying intention. which shows the results of the t-statistic value of 1.256 and also the p-value of 0.210 which can be stated to have no significant effect. However, the Health benefit variable that indirectly affects Buying Intention shows the results of a t-statistic value of 5.020 and a p-value of 0.000 which can be stated that the two variables have a significant effect, as well as the price variable which has an indirect effect on Buying. Intention which shows the results of the T-statistic value of 2.589 and the p-value of 0.010 which can be stated that the two variables have a significant effect.

 

8. R SQUARE TEST

This test has the aim of testing the relationship between independent variable, mediating variable and dependent variable. Seen in the Table 7 results from each variable.

Table 7 R Aquare Adjusted

Variable

R Square Adjusted

Buying Intention

0.946

Perceived Value

0.984

Source: Primary Data Processed (2022)

 

9. QUALITY INDEX TEST

In the Gof test can find out the quality of a good index Using the formula GoF = Common x R2, where Common is the average of AVE(community) and R2 is the average of R square, then the calculation of GoF test = 0.656 x 0.965 produces 0.63304 (> 0.36), so it is stated that this research model belongs to the large outcome group (GoF Large) Hair et al. (2020).

 

10. CONCLUSIONS

The purpose of this research is to have an understanding of the buying intention of a New Normal Kit brand during the COVID-19 pandemic. The conclusion in this study states that Health Benefit has a significant effect on Perceived Value, Brand Quality has a significant effect on Perceived Value, Bran Trust has a significant effect on Perceived Value, Price has a significant effect on Perceived Value, then Perceived Value also has a significant effect on Buying Intention, Health Benefit also has a significant effect on Buying Intention and so does Price which also has a significant effect on Buying Intent. it can be concluded that health benefits can affect the value of benefits received by consumers, as well as quality, trustworthiness and price, then also perceived value that can affect consumers' purchase intentions as well as health benefits and prices received by consumers can also affect their purchase intentions. The limitations of this study are that it only uses a limited object, and also hopes that subsequent observations can consider questions that do not valid not to be used in further research but can be add variable questions - certain variables in order to be able to strengthen a variable. then it is also recommended that in the next research it can add a sample of the New Normal Kit brand which will be studied and can also add the trust variable as an intervening variable which then affects the dependent variable Buying Intention.

 

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