Vol. 5, No. 10, October 2024

E-ISSN:2723 – 6692

P-ISSN:2723– 6595

http://jiss.publikasiindonesia.id/

Journal of Indonesian Social Sciences, Vol. 5, No. 10, October 2024 2617

The Effect of Price and Promotion on Purchasing Decisions for

Alexandre Christie Watches in Palembang City

Kris Yehuda Yohanes, Megawati

Universitas Multi Data Palembang, Indonesia

Email: krisyuddha04@mhs.mdp.ac.id, megawati@mdp.ac.id

Correspondence: krisyuddha04@mhs.mdp.ac.id

KEYWORDS

ABSTRACT

Price; Promotion; Buyer's

Decision;

In today's digital era, effective Marketing Public Relations (MPR)

strategies are crucial for businesses to remain competitive and

increase consumer engagement. This research aims to analyse the

influence of price and promotion on purchasing decisions for

Alexandre Christie watches in Palembang City. The sample includes

100 respondents selected using purposive sampling, and data was

collected through questionnaires with a Likert scale. The research

employed multiple linear regression analysis using SPSS version 25.

The findings reveal that both price and promotion variables

significantly and positively impact purchasing decisions, partially

and simultaneously. This study contributes to the growing body of

literature by highlighting the importance of targeted pricing

strategies and digital promotions in influencing consumer

behaviour, particularly in the fashion accessory market. The results

suggest that businesses should maintain competitive prices and

leverage promotions to align with market demands and consumer

preferences.

Attribution-ShareAlike 4.0 International (CC BY-SA 4.0)

Introduction

Today's millennial generation is no stranger to technological advances that are increasingly

up-to-date in accessing information, including information about the world of Fashion (Faerm, 2021;

Purwanto et al., 2022; Safira, 2023). Trend fashion in Indonesia is influenced by an outside culture

that sees various changes that have occurred during the development of these trends (Tarigan et al.,

2023). Trend fashion can be related to the style of clothing, jewellery, and accessories that became

popular over time. Moreover, tren fashion also represents social and economic status, which defines

popularity. In its initial development, fashion trends in Indonesia tended to imitate Western styles

both in the materials used and in the design (Mega, 2017).

Fashion accessories such as jewellery and watches are in high demand, and most people like

to wear watches because they remind people of the time. Initially, watches only had a modest shape,

and few large companies sold branded watches. The current trend is that more and more watches

with new brands are acceptable to the market, so the competition between the watch industry

regarding product quality and watch models will increase. Watches themselves are one of the

e-ISSN: 2723-6692  p-ISSN: 2723-6595

Journal of Indonesian Social Sciences, Vol. 5, No. 10, October 2024 2618

important components in the world of fashion, which often attract the attention of fansFashion.

Every year, you can witness a change in trends in the world of watches (Rahmat, 2023).

The increase in the number of diverse foreign Watch products in Indonesia today shows that

the market share of Watches in Indonesia is still very large and wide. Brands such as Alexandre

Christie, Guees, Police, Nautica, Seiko, Casio, and others have pioneered the development of the

Watch Industry in Indonesia. A brand’s diversity of Watch models results from fierce competition to

become well-known (Vedhitya, 2023).

For this generation, fashion symbolises confidence in purchasing decisions, including the

items they buy. This condition causes fierce competition for Alexandre Christie Watches in the

market, impacting prices, promotions, products and venues and deciding to buy watches in

Palembang. This threat can disrupt the existence of Alexandre Christie watches among the public,

especially in Palembang.

Promotion is a way for companies to convey information about a product to consumers so they

are interested in buying it. Promotion also means persuading consumers to know more about the

product and recognise it so that they can consider buying it (MediaIndonesia, 2022).

Price can be the amount paid for a service or the value consumers pay for its product or service.

Therefore, price is essentially the value that the buyer gives to the seller or service provider to meet

the needs and desires of the buyer related to a good or service (Meriana & Rosa, 2018).

Danyndra et al. (2021) conducted research entitled The Influence of Products, Prices, Places

and Promotions on Purchase Decisions at Classic Watches.id Stores. The study results obtained that

the two independent variables (Price and Promotion) from the results of the T Test and the F Test

stated that the simultaneous influence of all variables on consumer satisfaction showed significant

results.

Samuel Christian and Abdullah (2015) researched "The Influence of Price, Product, Promotion

and Place on the Purchase Decision of Matoa Brand Watches." The results obtained from the T-test

and F-test stated that the variables simultaneously affected consumer satisfaction and showed

significant results.

The competition among these brands has driven a focus on Marketing Public Relations (MPR)

strategies, where companies use digital platforms to build brand awareness and influence

purchasing decisions. However, while previous studies such as those by Danyndra et al. (2021) and

Samuel Christian and Abdullah (2015) have analysed the impact of traditional marketing variables

like price and promotion on consumer behaviour, these studies have not thoroughly explored how

MPR strategies, particularly in the digital context, can be used to enhance brand visibility and

customer loyalty. Furthermore, the specific case of Alexandre Christie watches in the Palembang

market, a highly competitive space, has yet to be fully examined.

This study aims to fill this gap by analysing the combined impact of price and promotion in the

context of digital marketing strategies on purchasing decisions for Alexandre Christie watches.

Unlike previous research focusing on broader fashion markets or product categories, this research

narrows its focus to the specific influence of digital promotions and pricing strategies in the luxury

watch industry. By examining how these factors interact within a highly competitive local market

like Palembang, this study offers a more nuanced understanding of consumer behaviour in this

e-ISSN: 2723-6692  p-ISSN: 2723-6595

Journal of Indonesian Social Sciences, Vol. 5, No. 10, October 2024 2619

segment, providing a fresh perspective on how companies can tailor their MPR strategies to optimise

customer engagement and sales.

This research aims to determine how price and promotion influence purchasing decisions for

Alexandre Christie watches. More specifically, it seeks to understand how competitive pricing and

targeted promotional activities can be leveraged to improve brand presence and drive sales. This

study provides significant practical implications for the watch industry, especially for luxury and

mid-range brands. For industry players, the findings offer insights into how businesses can adopt

effective digital marketing strategies to remain competitive. For marketers and brand managers, the

results emphasise the importance of aligning promotional efforts with consumer expectations in

local markets like Palembang. This research could also guide future product development and pricing

strategies that reflect the unique preferences of Indonesian consumers, enhancing market

penetration and customer loyalty.

In addition, this study’s findings have broader implications for the luxury accessory sector,

offering a roadmap for how brands can effectively use price adjustments and digital promotions to

compete in emerging markets. This research contributes to a better understanding of how MPR

strategies in the digital age can be applied in specific industries to boost consumer engagement and

loyalty.

Materials and Methods

This study employs a descriptive quantitative approach to analyse the effect of price and

promotion on the purchasing decisions of Alexandre Christie watches in Palembang City. Data was

collected through a questionnaire distributed to 100 respondents selected via purposive sampling.

Measurements were conducted using a Likert scale, and the data was analysed using multiple linear

regression with SPSS version 25 (Ghozali, 2018; Sugiyono, 2019).

Several regression assumption tests were performed to ensure the validity and reliability of the

regression model. Normality testing was conducted to ensure that the data follows a normal

distribution using the Kolmogorov-Smirnov test. Multicollinearity testing was performed to ensure

no strong linear relationship between the independent variables, assessed through the Variance

Inflation Factor (VIF) and Tolerance values. Multicollinearity is considered absent if the VIF is below

ten and the Tolerance value is greater than 0.1.

Additionally, heteroscedasticity testing was conducted to check whether the variance of the

residuals was constant. This was tested using the Glejser test or by examining the scatterplot of

residuals against predicted values. If no clear pattern is found, heteroscedasticity is not present.

Finally, autocorrelation testing was done using the Durbin-Watson test to ensure that the residuals

between observations were not correlated. A Durbin-Watson value close to 2 indicates no

autocorrelation.

By performing these regression assumption tests, the validity of the regression analysis results is

ensured, making the conclusions derived from this study reliable.

e-ISSN: 2723-6692  p-ISSN: 2723-6595

Journal of Indonesian Social Sciences, Vol. 5, No. 10, October 2024 2620

Results and Discussions

The results of the data management carried out can be seen in the following table (Laksana,

2019)

Table 1. R Square

Model Summary

Model

R Square

Adjusted R

Square

Std. Error of the

Estimate

,815a

,664

,657

1,000

a. Predictors: (Constant), Promotions, Prices

b. Dependent Variable: Purchase Decision

Source: Processed data, 2024

The R-value in Table 1 is obtained as 0.657, which means that the influence of the independent

variable on the dependent variable is as large as. This shows that the variation of the three

independent variables of price and promotion can explain 65.7% of the variation of the dependent

variable of the purchase decision. Other variables not included in this study affected the

remaining 34.3% outside the study.

Table 2. Test T

Coefficients

Model

Unstandardised

Coefficients

Standardised

Coefficients

Mr.

Std. Error

Beta

(Constant)

1,855

,822

2,256

,026

Price

,545

,075

,570

7,226

,000

Promotion

,193

,048

,315

3,996

,000

a. Dependent Variable: Purchase Decision

Source: Processed data, 2024

a. The price has a significant value of 0.000 < 0.05 and 7.226 > 1.985, so the price variable has a

positive and significant influence.







b. Promotion has a significant value of 0.000 < 0.05 and 3.996 > 1.985, so the price variable has a

positive and significant influence.







Table 3. Test F

ANOVA

Model

Sum of

Squares

Mean

Square

Mr.

Regressio

191,619

95,810

95,868

,000b

Residual

96,941

,999

Total

288,560

a. Dependent Variable: Purchase Decision

b. Predictors: (Constant), Promotion, Price

Source: Processed data, 2024

e-ISSN: 2723-6692  p-ISSN: 2723-6595

Journal of Indonesian Social Sciences, Vol. 5, No. 10, October 2024 2621

The F test in Table 3 has a significant value of 95.868, which means that price and promotion

variables influence consumer satisfaction.

The Effect of Price on Partial Consumer Satisfaction

This study produced significant values of 0.000 < 0.05 and 7.226 > 1.985, so the price variable

has a positive and significant influence by research conducted by Dio Diva, Tinneke and Olivia, which

states that price significantly influences purchasing decisions.

The Effect of Promotion on Partial Consumer Satisfaction

This study produced a significant value of 0. .000 < 0.05 and 3.996 > 1.985, then the price

variable has a positive and significant influence. This is in accordance with research conducted by

Samuel Christian and Abdullah, which states that promotion influences consumer satisfaction.

The Influence of Price and Promotion on Simultaneous Purchase Decisions

The results of the F test that have been carried out obtained that the significant value is 0.000

< 0.05, which means that it has a simultaneous positive influence on the price and promotion of the

purchase decision of Alexandre Christie watches in Palembang. Value Adjusted R Square 0.657 or

65.7% shows that price and promotion variables affect purchase decisions, and the remaining 34.3%

was obtained from variables outside this study. Price variables have a positive and significant

influence on the decision to buy Alexandre Christie watches in the city of Palembang in accordance

with the wishes and satisfaction of consumers. The promotional variable has a positive and significant

influence on the promotion that Alexandre Christie Watches has carried out in the city of Palembang

to meet the will and desires of consumers. The promotion also reached its target and attracted watch

enthusiasts (Sedky et al., 2022).

Conclusion

Based on the research that has been conducted, it is concluded that the price variable has a

positive and significant effect on the purchase decision variable, with a significant value of 0.000 and

a value of 7.226 > 1,985. The promotion variable has a value of 0.000 and a value of 3.996 > 1.985, so

the price variable has a positive and significant influence. Simultaneously, the price and promotion

variables have a value of 95.868, a significant value of 0.000. Based on the results of this study can be

used as a suggestion to Watch stores that sell the Alexandre Christie brand in Palembang City can use

this research as a reference and input in implementing influential variables in Palembang City by

maintaining competitive prices and building and promotions through their target market, For

research, It is hoped that this research can increase the researcher's insight and knowledge to readers

and researchers. For future researchers, hopefully, this research can develop by adding new variables

that are relevant to the decision to buy watches in the city of Palembang.

References

Danyndra, D. D., Tumbel, T. M., & Walangitan, O. F. C. (2021). Pengaruh Produk, Harga, Tempat,

Promosi Terhadap Keputusan Pembelian pada CV. Dio Dea Telecell. Productivity, 2(6), 477–842.

https://ejournal.unsrat.ac.id/v3/index.php/productivity/article/view/36302

Faerm, S. (2021). Evolving ‘places’: The paradigmatic shift in the role of the fashion designer. Fashion,

Style & Popular Culture, 8(4), 399–417. https://doi.org/10.1386/fspc_00099_1

Ghozali, I. (2018). Aplikasi Analisis Multivariate dengan Program IBM SPSS 25. Badan Penerbit

Universitas Diponegoro.

e-ISSN: 2723-6692  p-ISSN: 2723-6595

Journal of Indonesian Social Sciences, Vol. 5, No. 10, October 2024 2622

Laksana, M. F. (2019). Praktis Memahami Manajemen Pemasaran (Cetakan pertama). Khalifah

Mediatama.

MediaIndonesia. (2022, June 22). Jam Tangan Brand Lokal yang Telah Mendunia Bidik Star Wars.

Mediaindonesia.Com. https://mediaindonesia.com/ekonomi/503086/jam-tangan-brand-

lokal-yang-telah-mendunia-bidik-fans-star-wars

Mega, A. (2017, January 21). Perkembangan Trend Fasion di Indonesia. Kompasiana.Com.

https://www.kompasiana.com/annisamega/588321f3cc92731105931d89/perkembangan-

trend-fashion-di-indonesia?page=1

Meriana, M., & Rosa, T. (2018). Korelasi Promosi dan Harga terhadap Kepuasan Pelanggan Toko

Bunga Florist. Jurrnal Administrasi Dan Manajemen, 8(1), 777–786.

https://ejournal.urindo.ac.id/index.php/administrasimanajemen/article/view/255

Purwanto, H., Yandri, D., & Yoga, M. P. (2022). Perkembangan dan Dampak Financial Technology

(Fintech) terhadap Perilaku Manajemen Keuangan di Masyarakat. Kompleksitas: Jurnal Ilmiah

Manajemen, Organisasi Dan Bisnis, 11(1), 80–91.

https://doi.org/10.56486/kompleksitas.vol11no1.220

Rahmat, A. (2023). Terjadinya Peningkatan Pembelian Jam Tangan dari Tahun Sebelumnya.

Safira, R. (2023). Dampak Kemajuan Teknologi Pada Pendidikan Bahasa Indonesia. Student Scientific

Creativity Journal, 1(3), 54–62. https://doi.org/10.55606/sscj-amik.v1i3.1329

Sedky, D., Kortam, W., & AbouAish, E. (2022). The role of sports marketing in attracting audiences

towards less popular sports. Journal of Humanities and Applied Social Sciences, 4(2), 113–131.

https://doi.org/10.1108/JHASS-04-2020-0059

Sugiyono. (2019). Metode Penelitian Kuantitatif, Kualitatif, dan R&D. CV. Alfabeta.

Tarigan, W. B., Lini, S. I., Lande, A. C., Laurens, D., Aditama, M. H. R., Kasenda, R. Y., & Wantah, M. E.

(2023). Analisis Gaya Berpakaian Remaja Di Kota Tomohon Tengah. JUPE : Jurnal Pendidikan

Mandala, 8(1), 106. https://doi.org/10.58258/jupe.v8i1.4364

Vedhitya, M. (2023, September 21). Menilik Tren Jam Tangan di Indonesia Saat Ini. Marketeers.

https://www.marketeers.com/menilik-tren-jam-tangan-di-indonesia-saat-ini/

Wowor, S. C., & Abdullah, A. (2015). Pengaruh Bauran Pemasaran terhadap Keputusan Pembelian

(Studi Kasus Pada Pengguna Jam Tangan Matoa Indonesia Tahun 2015) . E-Proceeding of

Management , 2(2), 1–10.

https://openlibrarypublications.telkomuniversity.ac.id/index.php/management/article/down

load/9146/9155