Purchasing Decision Model on Make-to-Order Production System

Peneliti

Iyan Andriana, S.T., M.T. Dr. Henny, S.T, M.T

Deskripsi/Abstrak

Condition Covid-19 pandemic, the Micro, Small and Medium Enterprises (UMKM) Sector is still the primary support for the Indonesian economy. In order to continue to exist in its environment, companies must pay attention to client desires and translate them into strategic decisions in determining the design of the marketing strategy model and variables in the marketing mix, where all variables are assessed by the client and modelled in the form of a path diagram that refreshes consumer desires. Path analysis techniques determine the relationship and influence of each variable used to decide on the basis for decision making. The joint influence of the four product variables, promotion, price, and place, on product purchase decisions, was 47.10%. The partial influence that there is no effect of the product on the ordering decision, there is a promotional influence of 13.26%, there is a price influence of 29.82%, and there is a place influence of 10%. The hypothesis test states that the price variable is significant, and the significant influence of the price variable can serve as a basis for determining the choice of marketing strategy priorities. The marketing strategy decision for the classification of UMKM that use the make-to-order production system is different from the make-to-stock production system, where the price determines ordering decisions. Thus, UMKM, which uses the make-to-order production system, should prioritize price strategies so that marketing activities can be more effectively and efficiently