The Effect of Price and EWOM on Purchase Decisions: The Role of Trust and Brand Image as Mediating Variables
DOI:
https://doi.org/10.59261/bustechno.v7i4.805Keywords:
Brand Image, Electronic Word of Mouth, Price, Purchase Decision, TrustAbstract
Background: Motor vehicle ownership in Banten Province continues to expand, but this growth has not produced a comparable increase in conventional spare-parts retail sales. This condition makes it necessary to identify the determinants of consumer purchasing behavior under increasingly digital competition.
Objective: The study investigates how price and electronic word of mouth (EWOM) relate to purchase decisions among Toko Lestari Motor consumers, while examining trust and brand image as mediating mechanisms.
Methods: The research applies a quantitative causal design. Questionnaire responses were obtained from 154 purposively selected respondents and examined using Structural Equation Modeling-Partial Least Squares (SEM-PLS) with SmartPLS 4.1.1.4.
Results: Neither price nor EWOM shows a significant direct relationship with purchase decisions. Price, however, has a significant positive relationship with trust, and EWOM has a significant positive relationship with brand image. Trust and brand image each contribute significantly and positively to purchase decisions. The indirect tests further show that trust mediates the relationship between price and purchase decisions, and brand image mediates the relationship between EWOM and purchase decisions.
Conclusion: The evidence suggests that purchase decisions are more effectively supported by reinforcing consumer trust and brand image than by relying only on price policies or the circulation of EWOM.
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