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Article Open Access August 21, 2021

Decision Makers for Online Purchases of Fashion Products on Reebonz Online Shopping Sites

Fajar Rezeki Ananda Lubis 1, Rini Anggriani 2, Dinda Amanda Zuliestiana 3, Onita Sari Sinaga 4 and Acai Sudirman 4,*
1
Management Study Program, Universitas Prima Indonesia, Medan, Indonesia
2
Management Study Program, Universitas Bumigora, Mataram, Indonesia
3
Faculty of Economics and Business, Universitas Telkom, Bandung, Indonesia
4
Management Study Program, Sekolah Tinggi Ilmu Ekonomi Sultan Agung, Pematangsiantar, Indonesia
Publihed in: Universal Journal of Business and Management (Volume 1, Issue 1, 2021)
Page(s): 62-71
DOI: 10.31586/ujbm.2021.010105
Received
July 10, 2021
Revised
August 15, 2021
Accepted
August 20, 2021
Published
August 21, 2021
Keywords
Product Variation; Price; Brand Image; Promotion; Purchasing Decisions
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright: Copyright © The Author(s), 2021. Published by Scientific Publications

Abstract

The level of business competition in several online shopping sites for fashion products is currently experiencing quite crucial dynamics. Competitive match will indirectly affect consumer purchasing decisions. This research explores what factors are dominantly influencing the level of product purchase decisions on online shopping sites in terms of product variety, price, brand image and promotion aspects. This research design uses a quantitative research design. Determination of the sample in this study using the convenience sampling method with a total of 110 respondents. Data collection uses a questionnaire distributed online during the period from May to June 2021. This study concludes that product variations and brand image have a positive and significant influence on purchasing decisions. Then for the effect of price and promotion on purchasing decisions obtained a positive but not significant impact. This study confirms the importance of paying attention to aspects of pricing and product promotion strategies on the Reebonz online shopping site.

1. Introduction

As a pioneer in the branded product business, the Reebonz shopping site presents various advantages that strengthen its position as the new luxury ecosystem. The founders of Reebonz saw the market growth so fast, that innovative innovation efforts were needed. This condition is crucial for Reebonz as a pioneer in the luxury product business. Through the online ecosystem, Reebonz provides various conveniences for its customers to access world-renowned branded products through multiple features, one of which is Reebonz Closets, an application that connects fashion lovers to sell and buy pre-loved goods from world-renowned designers. On the other hand, Reebonz Marketplace also offers members access to hundreds of collections of rare branded products from boutique owners and vintage curators; and Reebonz Space, an offline version of Reebonz, already present in several countries such as Singapore, Australia and Thailand. To continue to exist among consumers, it is necessary to have a concrete marketing strategy to build and grow purchasing decisions on the Reebonz online shopping site. The steps that can be taken include providing various products according to consumer tastes, setting standard prices, building a brand image and preparing a credible promotional strategy. To continue to exist among consumers, it is necessary to have a concrete marketing strategy to develop and grow purchasing decisions on the Reebonz online shopping site. The steps that can be taken include providing various products according to consumer tastes, setting standard prices, building a brand image and preparing a credible promotional strategy [1]. To continue to exist among consumers, it is necessary to have a concrete marketing strategy to develop and grow purchasing decisions on the Reebonz online shopping site. The steps that can be taken include providing various products according to consumer tastes, setting standard prices, building a brand image and preparing a credible promotional strategy [2]

The ability to create many product variations to meet every demand is one factor to compete in a competitive market [3]. A variety of products based on size, price, appearance or other characteristics as distinguishing elements reflects product variations [4]. Product variety or product diversity is nothing new in marketing, where business actors and marketers widely use this strategy to complete their marketing mix [5]. Product variation as a separate expert in a brand or product can be distinguished based on size, price, appearance or characteristics. According to [6], product variations are suitable to be chosen if the company intends to take advantage of product flexibility as a competitive strategy with manufacturers such as standard products. Therefore, the essence of a variety of products available on the Reebonz online shopping site is the basis for consumers to take actions that lead to the stigma of making purchases or vice versa. Research results [7], with a research study on purchasing decisions on Zalora.co.id E-commerce consumers, concluded that product variations have a significant effect on purchasing decisionss. The same thing was also conveyed [8], with a focus on the study of purchasing decisionss in terms of smartphone product variations, conveyed that product variations also encouraged purchasing decisionss.

In addition to the product variation factor, the marketing mix element known as price is one of the crucial factors influencing a consumer's purchase decision [9]. On the other hand, price is the amount of money charged for a product or service or the amount of value paid by consumers to benefit from or have or use the service [10]. According to [11], price can be defined as the amount of money charged for a product or service or in another sense defined as the amount of value that consumers exchange for the benefit of owning and using the product or service that allows the company to earn a fair profit by being paid for customer value [12]. This indicates the crucial role of price for consumers to determine their buying attitude. Research result [13] finds facts that lead to a significant price involvement in consumer purchasing decisions. On the other hand, the study results [14] focused on online purchasing decision research on E-Commerce Lazada concluded that prices have a significant contribution to the highs and lows of purchasing decisions.

The existence of a brand image attached to a product is very important for the product's sustainability. Every company has an image, whether consciously or not, has been linked to the company [15]. Not a few goods or services produced by the company so strong image in the minds of consumers. Thus the brand image is one of the most critical assets of a company or organization that should be continuously built and maintained [16]. A good image is a powerful tool, not only to attract consumers to choose a product or company, but also to improve consumer buying attitudes. Companies must develop brands to give a positive impression in the minds of consumers [17]. A positive image will ultimately make customers loyal and willing to repurchase the product in the future. This statement is supported by research results [18], which states that a well-constructed brand image influences consumer purchasing decisions. The same thing was said [19], which confirms that its brand image influences the purchase decision.

No less important factor to drive purchasing decisions is the marketing mix element by the name of promotion. In doing business, trading, or selling services online, every business person needs to promote to consumers in several ways [20]. This promotion aims to introduce the products and services that you sell to attract consumers' attention [21]. The role of promotion is considered quite important because it can affect the product's existence in the market. The urgency of doing promotions to recognize products through a digital marketing system can efficiently and effectively promote products. In addition, it not only provides information about product characteristics, but can also provide education to consumers, such as benefits and advantages that cannot be found in other products [22]. Research result [23] with the substance of research on purchasing decisions in fashion stores on the social network Facebook stated that the role of promotion is very dominant in determining consumer purchasing decisions. The same thing was also conveyed [24] with the focus of research on purchasing decisions for fashion products at Lazada on students in Jakarta, stated that promotion to purchasing decisions was positive and significant.

The importance of the product variety factor in selling online also invites the attention of business people to increase the existence of their products. We believe that the large variety of products is considered to make the brand more preferred by consumers. The wide distribution and convenience offered by the product also affect consumer choice. On the other hand, the importance of the brand image of a product helps the growth of the product brand. A brand needs to be bought more and more often to get business growth. Therefore, the brand must be relevant to the changing needs of consumers. Furthermore, promotion is crucial to be carried out by various business circles, both small-scale and large-scale businesses. Although promotion is an important thing in business, many business people think that promotion is not essential or even too confident in their business that they don't need to carry out activities related to promotion. The urgency of this research is to examine the contribution of product variations, price, brand image and promotion to the purchasing decisions of fashion products on the online shopping site Reebonz. This research is expected to provide additional information for Reebonz online shopping site developers and consumers to synergize with each other to build reputation and encourage the growth of fashion product sales on the Reebonz online shopping site. but there are still many business people who think promotion is not essential or even too confident in their business so they don't need to carry out activities related to promotion. The urgency of this research is to examine the contribution of product variations, price, brand image and promotion to the purchasing decisions of fashion products on the online shopping site Reebonz. This research is expected to provide additional information for Reebonz online shopping site developers and consumers to synergize with each other to build reputation and encourage the growth of fashion product sales on the Reebonz online shopping site. but there are still many business people who think promotion is not essential or even too confident in their business so they don't need to carry out activities related to promotion. The urgency of this research is to examine the contribution of product variations, price, brand image and promotion to the purchasing decisions of fashion products on the online shopping site Reebonz. This research is expected to provide additional information for Reebonz online shopping site developers and consumers to synergize with each other to build reputation and encourage the growth of fashion product sales on the Reebonz online shopping site.

2. Materials and Methods

Quantitative research design with associative approach is used in this study. The data used in this study used primary data by collecting through online questionnaires. The research population is consumers who buy fashion products on the online shopping site Reebonz. Due to the unknown number of the population, the sample was taken using a convenience sampling technique. According to [25], if the number of the population is not known ideally the size of the representative respondents depends on the sum of all indicators in the variable multiplied by 5-10. This study has 22 indicators, so the minimum number of respondents for this study is 22 x 5 = 110. Therefore, the number of respondents who were taken for this study after being rounded up involved 110 respondents. Testing the questionnaire data using a validity test, where if rcount 0.3 with 95% significance it is declared valid [26] and the rebiability test, where a variable is said to be reliable, if it has a Cronbach alpha value > 0.60 [27]. Furthermore, multiple regression tests were carried out, hypothesis testing with simultaneous and partial methods and correlation tests with the coefficient of determination.

3. Results

3.1. Characteristics of Respondents
Table 1
General Profile of Respondents
3.2. Validity and Reliability Test
Table 2
Validity Test Results

Based on the validity test of table 1 above, it is concluded that all indicators in the study have a value above 0.30, therefore the measurement items used in this research are valid. Next, a reliability experiment is carried out which is used to measure the measurement items on the questionnaire items that describe the indicators of the variables. A questionnaire is reliable if a person's response to a question does not change or is normal from time to time.

Table 3
Reliability Test Results

Based on the results of the reliability experiments shown in table 2 above, it proves that all indicators have a Cronbach alpha value for each instrument > 0.70, so it can be concluded that all tools used are reliable.

3.3. Multiple Regression Test
Table 4
Multiple Regression Test Results

The results of the multiple linear regression above, obtained the equation model: = 6.969 + 0.396 X1 + 0.095 X2 + 0.152X3 + 0.125X4, which means that product variations, price, brand image and promotion have a positive effect on purchasing decisions. Based on these equations, it can be interpreted as follows:

  1. The constant value of 6.969 can be interpreted if product variations, price, brand image and promotion are considered zero, then the value of purchasing decisions will be in the range of 6.969 values.
  2. The value of the beta coefficient on the product variations variable is 0.396, which means that every change in the product variations variable by one unit will result in a change in purchasing decisions of 0.396 units assuming the other variables are constant.
  3. The value of the beta coefficient on the price variable is 0.095, which means that every change in the price variable by one unit will result in a change in purchasing decisions of 0.095 units assuming that the other variables are at a constant value.
  4. The value of the beta coefficient on the brand image variable is 0.152, which means that every change in the brand image variable by one unit will result in a change in purchasing decisions of 0.152 units assuming that the other variables are at a constant value.
  5. The value of the beta coefficient on the promotion variable is 0.125, which means that every change in the promotion variable by one unit will result in a change in purchasing decisions of 0.125 units assuming that the other variables are at a constant value.
    6. 3.4. Simultaneous and Partial Hypothesis Testing

To examine the variable binding simultaneously, experiment F is used. Simultaneous hypothesis testing is tried to identify whether the product variations, price, brand image and promotion that are tried to influence purchasing decisions simultaneously.

Table 5
Simultaneous Test Results

Based on the results of the simultaneous test analysis in table 5, the Fcount value is 16,458 > from Ftable with (0.05; 4 vs 116) of 2.46 or with a significant 0.000 < 0.05, it can be interpreted as product variations, price, brand image and promotion that are tried to influence purchasing decisions in a simultaneously acceptable way. Furthermore, a partial test is carried out that aims to determine the relationship between product variations, price, brand image, and promotion variables that partially influence purchasing decisions. Based on the results of data analysis in table 4, the results of the t-test in this study are as follows:

  1. The product has a significant level of 0.000 0.05, meaning that product variations significantly affect purchasing decisions.
  2. The price obtained a significant level of 0.241 > 0.05, meaning that the price has no significant effect on purchasing decisions
  3. Place obtained a significant level of 0.033 0.05, meaning that brand image significantly affects purchasing decisions.
  4. Promotion obtained a significant level of 0.260 0.05, meaning that promotion has no significant effect on purchasing decisions.
    5. 3.5. Coefficient of Determination Test

The coefficient of determination is done to measure how far the ability of a model to explain the variation of the dependent variable. The results of the determination test in this study can be explained in Table 6 below:

Table 6
Coefficient of Determination Test Results

Based on the results of data analysis in table 6 above, the coefficient of determination value is 0.385, which means that product variations can explain the high and low purchasing decisions of 38.5%, price, brand image and promotion, while factors can explain the remaining 61.5% others not discussed in this study.

4. Discussion

Based on the results of partial hypothesis testing (H1), product variations significantly affect purchasing decisions. These results prove that the condition of product variation is an essential thing in determining the selection of a product by consumers. Consumers will prefer and like other similar products that can meet their needs and desires [28]. The variety of products available on the Reebonz online shopping site is advantageous for consumers as they can choose from various alternatives. The existence of product diversity will provide flexibility for consumers in determining the choice of products to be purchased to meet needs and complete needs. Therefore, the increasing number of product variations offered can encourage consumers to carry out a continuous purchasing decision process [29].

Based on partial hypothesis testing (H2) results, the price has no significant effect on purchasing decisions. If the price offered by the company is not following customer expectations, the customer will decide to postpone the purchase of a product. Although the variety of products available on the Reebonz online shopping site is very diverse, if the price offered is not following consumer expectations, it will create a stigma not to buy the product [30]. The price labeled on each product on the online shopping site Reebonz is fixed, so consumers cannot exercise bargaining power on the product. Customers will make continuous purchases [31]. Therefore, it can be concluded that the price affects purchasing decisions.

Based on the results of partial hypothesis testing (H3), brand image significantly affects purchasing decisions. The consumer's interpretation of the advantages of attributes, uses, situations, users and characteristics of the maker of the product or brand allows consumers to make purchasing decisions about the brand. A strong growing brand image can win business competition because it offers attractiveness to consumers and provides product differentiation [32]. This is why the products offered on the online shopping site Reebonz are trendy among buyers, especially those who are mostly millennial buyers. On the other hand, a brand that grows big and strong can easily expand its business volume. Because the market will be easier to recognize and accept new products or variants launched by the brand [33]. With a strong brand image, it will undoubtedly encourage high purchase intensity online.

Based on the results of partial hypothesis testing (H4), promotion has no significant effect on purchasing decisions. Promotion is the most important activity that plays an active role in introducing, informing, and reminding consumers of the benefits of a product to encourage consumers to buy the promoted product. Promotion refers to the various activities the company undertakes to communicate the goodness of its products and persuade customers and consumers to buy the product [34]. The results of this study illustrate that consumer purchasing decisions on the online shopping site Reebonz are influenced by promotional factors and product variations and strong brand image, which also builds a positive stigma on consumer attitudes to make purchases. On the other hand, the online shopping site Reebonz also carries out promotions on newly released products that are not yet widely known to consumers to get the attention of new consumers so that they intend to purchase these products [35].

5. Conclusions

This study suggests that of the four hypotheses developed, only two hypotheses can be accepted. For the influence of product variations and brand image obtained a positive and significant effect on purchasing decisions. The existence of product variations is an attempt to create a distinct advantage over other products. In business, excellence can indeed be viewed from many aspects, such as appearance, benefits, lower prices, etc. Products that are different from other products can be superior because they have advantages in appearance, brand strength, and more appealing views. Usually the same product will be considered typical once a product with this differentiation value appears. Furthermore, for the effect of price and promotion on purchasing decisions, the results are not significant.

Author Contributions:

Fajar Rezeki Ananda, as the first author to carry out the research activity, Rini Anggriani, Dinda Amanda Zuliestiana and Onita Sari Sinaga as the second to fourth writer who has done the editing of the manuscript and review of the article, Acai Sudirman as the corresponding author who has submitted the article, edited the manuscript and carry out the review process.

Funding: This research received no external funding

Data Availability Statement: Already mentioned in appropriate sections

Acknowledgments: This paper is dedicated to Almighty GODwho bestows HISblessings in all walks of my life

Conflicts of Interest: No conflict of interest

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Cite This Article

APA Style
Lubis, F. R. A. , Lubis, F. R. A. Anggriani, R. , Anggriani, R. Zuliestiana, D. A. , Zuliestiana, D. A. Sinaga, O. S. , & Sinaga, O. S. (2021). Decision Makers for Online Purchases of Fashion Products on Reebonz Online Shopping Sites. Universal Journal of Business and Management, 1(1), 62-71. https://doi.org/10.31586/ujbm.2021.010105
ACS Style
Lubis, F. R. A. ; Lubis, F. R. A. Anggriani, R. ; Anggriani, R. Zuliestiana, D. A. ; Zuliestiana, D. A. Sinaga, O. S. ; Sinaga, O. S. Decision Makers for Online Purchases of Fashion Products on Reebonz Online Shopping Sites. Universal Journal of Business and Management 2021 1(1), 62-71. https://doi.org/10.31586/ujbm.2021.010105
Chicago/Turabian Style
Lubis, Fajar Rezeki Ananda, Fajar Rezeki Ananda Lubis. Rini Anggriani, Rini Anggriani. Dinda Amanda Zuliestiana, Dinda Amanda Zuliestiana. Onita Sari Sinaga, and Onita Sari Sinaga. 2021. "Decision Makers for Online Purchases of Fashion Products on Reebonz Online Shopping Sites". Universal Journal of Business and Management 1, no. 1: 62-71. https://doi.org/10.31586/ujbm.2021.010105
AMA Style
Lubis FRA, Lubis FRAAnggriani R, Anggriani RZuliestiana DA, Zuliestiana DASinaga OS, Sinaga OS. Decision Makers for Online Purchases of Fashion Products on Reebonz Online Shopping Sites. Universal Journal of Business and Management. 2021; 1(1):62-71. https://doi.org/10.31586/ujbm.2021.010105 
@Article{ujbm83,
AUTHOR = {Lubis, Fajar Rezeki Ananda and Anggriani, Rini and Zuliestiana, Dinda Amanda and Sinaga, Onita Sari and Sudirman, Acai},
TITLE = {Decision Makers for Online Purchases of Fashion Products on Reebonz Online Shopping Sites},
JOURNAL = {Universal Journal of Business and Management},
VOLUME = {1},
YEAR = {2021},
NUMBER = {1},
PAGES = {62-71},
URL = {/10.31586/ujbm-1-1-510.31586/ujbm/1/1/5},
ISSN = {2770-1964},
DOI = {10.31586/ujbm.2021.010105},
ABSTRACT = {The level of business competition in several online shopping sites for fashion products is currently experiencing quite crucial dynamics. Competitive match will indirectly affect consumer purchasing decisions. This research explores what factors are dominantly influencing the level of product purchase decisions on online shopping sites in terms of product variety, price, brand image and promotion aspects. This research design uses a quantitative research design. Determination of the sample in this study using the convenience sampling method with a total of 110 respondents. Data collection uses a questionnaire distributed online during the period from May to June 2021. This study concludes that product variations and brand image have a positive and significant influence on purchasing decisions. Then for the effect of price and promotion on purchasing decisions obtained a positive but not significant impact. This study confirms the importance of paying attention to aspects of pricing and product promotion strategies on the Reebonz online shopping site.},
}
%0 Journal Article
%A Lubis, Fajar Rezeki Ananda
%A Anggriani, Rini
%A Zuliestiana, Dinda Amanda
%A Sinaga, Onita Sari
%A Sudirman, Acai
%D 2021
%J Universal Journal of Business and Management

%@ 2770-1964
%V 1
%N 1
%P 62-71

%T Decision Makers for Online Purchases of Fashion Products on Reebonz Online Shopping Sites
%M doi:10.31586/ujbm.2021.010105
%U /10.31586/ujbm-1-1-510.31586/ujbm/1/1/5

TY  - JOUR
AU  - Lubis, Fajar Rezeki Ananda
AU  - Anggriani, Rini
AU  - Zuliestiana, Dinda Amanda
AU  - Sinaga, Onita Sari
AU  - Sudirman, Acai
TI  - Decision Makers for Online Purchases of Fashion Products on Reebonz Online Shopping Sites
T2  - Universal Journal of Business and Management
PY  - 2021
VL  - 1
IS  - 1
SN  - 2770-1964
SP  - 62
EP  - 71
UR  - /10.31586/ujbm-1-1-510.31586/ujbm/1/1/5
AB  - The level of business competition in several online shopping sites for fashion products is currently experiencing quite crucial dynamics. Competitive match will indirectly affect consumer purchasing decisions. This research explores what factors are dominantly influencing the level of product purchase decisions on online shopping sites in terms of product variety, price, brand image and promotion aspects. This research design uses a quantitative research design. Determination of the sample in this study using the convenience sampling method with a total of 110 respondents. Data collection uses a questionnaire distributed online during the period from May to June 2021. This study concludes that product variations and brand image have a positive and significant influence on purchasing decisions. Then for the effect of price and promotion on purchasing decisions obtained a positive but not significant impact. This study confirms the importance of paying attention to aspects of pricing and product promotion strategies on the Reebonz online shopping site.
DO  - Decision Makers for Online Purchases of Fashion Products on Reebonz Online Shopping Sites
TI  - 10.31586/ujbm.2021.010105
ER  -
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