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Agriculture and Agricultural Science Procedia 3 (2015) 67 71

The 2014 International Conference on Agro-industry (ICoA) : Competitive and sustainable Agroindustry for Human Welfare

Marketing Strategy Based on Marketing Mix Influence on

Purchasing Decisions of Malang Apples Consumers at Giant
Olympic Garden Mall (MOG), Malang City, East Java Province,
Indonesia
Retno Astutia,*, Rizky Lutfian Ramadhan Silalahia, Galuh Dian Paramita Wijayaa
a

Department of Technology of Agricultural Industry, Faculty of Technology of Agriculture, University of Brawijaya, Jalan Veteran,
Malang 65145, Indonesia

Abstract
The aim of this research was to know the influences of 7P marketing mix variables, which consists of product, price, promotion,
place,
people, physical
evidence and process
on purchasing
decision
of consumers
in determining
strategy
Peer-review
under responsibility
of Jurusan
Teknologi
Industri
Pertanian,
Fakultasappropriate
Teknologimarketing
Pertanian,
Universitas Gadjah(
Peer-review
under
Jurusan
Teknologi
Pertanian,
Fakultas
Teknologi
Pertanian,
of Malang apples
at responsibility
Giant MOG. Theofresult
analysis
showed Industri
that the most
influential
marketing
mix variable
was price with the
odd pricing as the best strategy to increase the purchasing decision of Malang apples consumers at Giant MOG.

2015 The Authors. Published by ElsevierB.V. This is an open access article under the CC BY-NC-ND license
http://creativecommons.org/licenses/by-nc-nd/4.0/).
Mada.

Universitas Gadjah Mada

Keywords: Malang apples; marketing mix; marketing strategy; purchasing decision

1. Introduction
Apple is a favorite fruit of Indonesian people, which are generally consumed to meet the needs of fiber for
humans. Malang apples is one of the leading commodities of Malang City, East Java Province, Indonesia, which is
preferred due to the high fiber content (Satuhu, 2004). Malang apples are sold in traditional markets and modern

Corresponding author. Tel: +62-812-3311042; fax: +62-341-583964.

E-mail address: retno_astuti@ub.ac.id ; retno_astuti_triharso@yahoo.com
*

2210-7843 2015 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/4.0/).
Peer-review under responsibility of Jurusan Teknologi Industri Pertanian, Fakultas Teknologi Pertanian, Universitas Gadjah Mada
doi:10.1016/j.aaspro.2015.01.015

Retno Astuti et al. / Agriculture and Agricultural Science Procedia 3 (2015) 67 71

68

retails. One of modern retail in Indonesia is Giant. The main advantage of modern retail like Giant is a place that is
spacious, comfortable and traded a variety of goods, ranging from daily necessities to electronic goods and other
household items. Apples is one of the types of fresh produce that can be found and purchased at Giant with
sometimes cheaper prices than in traditional markets
Giant Mall Olympic Garden (MOG), which is located in Jalan Kawi No. 24, Malang City, East Java Province, is a
large-scale retail businesses. In order to create a competitive advantage, Giant MOG has to apply various strategies
so that consumers are keen to make purchasing decisions of products sold at Giant MOG. Malang apples is in
demand product at Giant MOG, but the level of Malang apples sales is still inferior to imported apples (Satuhu,
2004).
The marketing mix is one of factors influence the purchasing decisions of consumers. According Kotler and
Amstrong (2010), the marketing mix is a set of marketing tools used by companies to achieve its marketing
objectives. The 7P marketing mix is incorporated in a modern marketing system, i.e. product, price, place,
promotion, people, physical evidence, and process (Lovelock, 2011). Giant MOG should pay attention to the concept
of the marketing mix to meet the needs of Malang apples consumers so that it will be easier to implement
appropriate strategies for marketing Malang apples. The aim of this research was to know the influences of 7P
marketing mix variables on purchasing decision of consumers in determining appropriate marketing strategy of
Malang apples at Giant MOG.
2. Case Study
The study was conducted in April 2014 to June 2014 at Giant MOG, Malang City, East Java Province, Indonesia.
The data was collected using 2 kinds of questionnaires. In order to collect data for determining the influences of 7P
marketing mix variables on purchasing decision of Malang apples consumers, questionnaires were distributed to 100
consumers of Malang apples who were determined using Slovin method and was taken using a judgment sampling.
The criteria of respondent were 17-55 years old, had consumed or purchased Malang apples as much as
2 times a
month, and had last term of purchasing Malang apples less than a month before filling out the questionnaires.
Another questionnaire for determining the marketing strategy of Malang apples based on marketing mix analysis
was distributed to the Product Supervisor of Giant MOG as experts of Malang apples marketing at Giant MOG.
2.1. The determination of 7P marketing mix variables influences on purchasing decision of Malang apple
s
consumers at Giant MOG
Multiple linear regression analysis was used to determine the marketing mix variable that most influences on
purchasing decisions of Malang apples consumers at Giant MOG. The advantages of multiple linear regression
analysis was the capability to determine the relationship of many independent variables to the dependent variable
(Lind et al., 2010). The following equation was used for this research:
(1)
where:
Y
: a dependent variable that is reflecting purchasing decision of Malang apples consumers
X1, X2, X3, , X7: independent variables that are reflecting marketing mix variables
b0
: a constant that is reflecting the value of purchasing decision of Malang apples consumers when
there are no marketing mix influence
b1, b2, b3, , b7 : estimated partial regression coefficients that are reflecting the change in purchasing decision of
Malang apples consumers relative to a one unit change in the respective marketing mix variable
e
: the noise term that is reflecting other factors that influence a dependent variable
The variables in determining of 7P marketing mix variables influences on purchasing decision of Malang apples
consumers at Giant MOG are shown in Table 1. Respondents had to give score on each attributes of marketing mix
variables and purchasing decision of Malang apples consumers using forced choice scale from 1 which represent

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Retno Astuti et al. / Agriculture and Agricultural Science Procedia 3 (2015) 67 71

strongly disagree of consumers on the questionnaire statement to 4 which represents consumers strongly agree on
the questionnaire statement.
Table 1. Variables and attributes of marketing mix and purchasing decision of Malang apples consumers at Giant MOG
Variables

Attributes

Variables

Attributes

The taste of Malang apples (X11)

People (X5)

The responsiveness of salesperson in servicing the

consumers (X51)

Independent
Variables
Product (X1)

The freshness of Malang apples (X12)

Price (X2)

The affordability of Malang apples price

(X21)

The friendliness of salesperson in servicing the

consumers (X52)
Physical Evidence
(X6)

The convenience of facilities (X61)

Process (X7)

The impression of the display (X71)

The cleanness of shop area (X62)

The suitability price to quality of Malang

apples (X12)
Place (X3)

The availability of Malang apples (X31)

The affordability display of Malang apples
(X32)

Promotion (X4)

The easiness of payment process (X72)

The promotion frequency of Malang apples

(X41)
The discount price frequency of Malang
apples (X42)

Dependent
Variables
Purchasing
Decision (Y)

The consistency of buying Malang apples at

Giant MOG (Y1)
The intensity of buying Malang apples at
Giant MOG (Y2)

According to Zikmund (2003) a good questionnaire, as a research instrument must be valid and reliable. It is
valid if it can measure what should be measured, meanwhile it is reliable if it is consistent in measuring what should
be measured. Based on the validity and reliability analysis using software SPSS version 17, the instrument of this
research fulfilled the criteria to be valid and reliable.
The result summary of multiple linear regression analysis using software SPSS version 17 is shown in Table 2
with the model as follow:
(2)
Based on the residual analysis, the model satisfied the assumptions for dependent variables, i.e. the normality, the
multicollinearity, the autocorrelation, and the heterocesdasticity (Greene, 2002). The adjusted R2 resulted from
regression analysis was 0.826. It means that the diversity of purchasing decision of Malang apples consumers at
Giant MOG was 82.6% influenced by independent variables (product, price, place, promotion, people, physical
evidence, and process), while the remaining 17.4% was influenced by other variables beyond the variables in this
research. It is also mentioned on Table 2 that the highest estimated partial regression coefficients was 0.287 on price
variable so that price was the most influential marketing mix variable on purchasing decision of Malang apples
consumers at Giant MOG.
F-test and t-test then were carried out to know the influence of the marketing mix variables on purchasing
decision of Malang apples consumers at Giant MOG simultaneously and partially. The F-test result showed that
product, price, place, promotion, people, physical evidence and process influenced simultaneously and significantly
the purchasing decision of Malang apples consumers at Giant MOG. The t-test result showed that product, price,

Retno Astuti et al. / Agriculture and Agricultural Science Procedia 3 (2015) 67 71

70

place, promotion and process influenced the purchasing decision partially and significantly, meanwhile people and
physical evidence did not influence significantly the purchasing decision of Malang apples consumers at Giant
MOG
Table 2. Result summary of multiple linear regression analysis
Variables

Unstandardized coefficient

Significance

Constant

0.864

3.063

0.003

Product (X1)

0.200

3.938

0.000

Price (X2)

0.275

3.738

0.000

Place (X3)

0.139

2.432

0.017

Promotion (X4)

0.084

2.197

0.031

People (X5)

0.006

0.093

0.926

Physical Evidence (X6)

0.004

0.057

0.954

Process (X7)

0.137

2.856

0.005

Adjusted

R2

= 0.826

= 68.216

F table

= 2.111

Significance F

= 0.000

t table

= 1.986

= 0.05

2.2. The determination of strategy of Malang apples marketing at Giant MOG

Consumer behavior is too complex to be analyzed because many variables influence it and tend to interact each
other on purchasing decision of consumer. Based on the analysis of the marketing mix, Analytical Hierarchy Process
(AHP) was used to set the right marketing strategy of Malang apples at Giant MOG according to management of
Giant MOG. AHP is a method for ranking decision alternatives and selecting the best one when the decision maker
has multiple criteria (Taylor 2004). The basic advantage of using a hierarchy structure is that the understanding of
its highest level is obtained from the interactions among the various lower levels (Siquiera et al., 2008)
Price was the most influential marketing mix variable on purchasing decision of Malang apples consumers at
Giant MOG so that the strategy of Malang apples marketing must focus on the price. According to the Product
Supervisor of Giant MOG as respondent, there were 3 factors should be considered to determine price strategy for
Malang apples marketing, i.e. cost, competition, and demand. In determining the price of Malang apples, Giant
MOG should consider the cost involved, otherwise there might be no profit to be made. Giant MOG also should
determine the price of Malang apples based on competitor price if it thinks that consumers are more likely to buy
Malang apples at its competitors. The determination of Malang apples price can affect the demand of the apples so
that demand should be considered by Giant MOG in determining Malang apples price. Each factors has the same
price strategies that could be considered in determining strategy for Malang apples at Giant MOG. The strategies
were follow competitor pricing to avoid unfair competition, odd pricing to impress price sensitive consumers,
discount pricing which is done when Giant MOG is having high level of Malang apples inventory, and promotion
pricing for impressing the consumers to buy more Malang apples.
The preferences of respondent between factors and between strategies were determined by making pair-wise
comparisons in which the respondent examined two pricing strategies of Malang apples marketing by considering
one factor and indicated a preference. These comparisons were made using a preference scale, which assigns
numerical values to different levels of preference. The standard preference scale used for AHP is 1-9 scale that lies
between equal importance to extreme importance (Saaty and Vargas 2012).
The result of determining price strategy of Malang apples marketing using AHP method based on experts
judgments expressed in a nine-point ratio scale is shown in Figure 1 with consistency ratio (CR) below 0.1. The CR

Retno Astuti et al. / Agriculture and Agricultural Science Procedia 3 (2015) 67 71

is used to estimate directly the consistency of pairwise comparisons. If the CR less than 0.10, the comparisons are
acceptable, otherwise not (Saaty and Vargas, 2012).

71
Focus
Pricing Strategy of Malang Apples
Marketing at Giant MOG

Competition
0.32*

Cost
0.32*

Demand
0.36*

Factors

Odd Pricing

Discount Pricing

Promotion Pricing

0.65

0.14

0.07

Follow Competitor
Pricing
0.14*

Alternatives

*Weight of importance degree that was measured using AHP method

Fig. 1. AHP structure of determining price strategy of Malang apples marketing

Based on AHP result, the highest weight of factors considered in pricing strategy was demand with the weight of
0.36, meanwhile odd pricing was the highest weight of alternative pricing strategy of Malang apples marketing at
Giant MOG. It means that demand was the most important factors that should be considered by Giant MOG in
determining the price of Malang apples. The demand of consumers on price will be related to the behavior of the
consumers to the product. Consumers would be more interested in purchasing Malang apples if the management of
Giant MOG implemented odd pricing that psychologically influenced price sensitive consumers. Consumers would
think that the price of 3,499 rupiah was cheaper than the price of 3,500 rupiah.
3. Conclusion
The most influential marketing mix variable on purchasing decision of Malang apples consumers at Giant MOG
was price. In order to influence the behavior of the consumers to Malang apples, Giant MOG should consider
demand factor in determining the price of Malang apples. Odd pricing was the most appropriate strategy of Malang
apples marketing that psychologically influenced price sensitive consumers.
References
Greene, W.H., 2002. Econometric Analysis. 5th Edition. Prentice Hall, New Jersey.
Lind, D., Marchal, W., Wathen, S., 2011. Statistical Techniques in Business and Economics. 15th Edition. McGraw-Hill.
Lovelock, C., Wirtz, J., Chew, P., 2011. Essentials of Services Marketing. 2nd Edition. Prentice Hall, Singapore.
Kotler, P.,Armstrong, G.M., 2010. Principles of Marketing. 13th (Global) Edition. Pearson Education, Inc., Boston.
Satuhu, S., 2004. Penanganan dan Pengolahan Buah. Penebar Swadaya, Indonesia.
Saaty, T.L., Vargas, L.G., 2012. Model, Methods, Concepts, and Applications of the Analytic Hierarchy Process. 2nd Edition. Springer, US.
Siquera, K. B., Da Silva, C. A. B., Aguiar, D. R. D., 2008. Viability of Introducing Milk Futures Contracts in Brazil: A Multiple Criteria Decision
Analysis. Agribusiness 24 (4), 491-509.
Taylor, B. W., 2004. Introduction to Management Science. Pearson Education Inc., New Jersey.
Zikmund, W.G., 2003. Business Research Methods. 7th Edition. Thompson South-Western, Ohio.

Perilaku konsumen terlalu kompleks untuk dianalisis karena banyak variabel mempengaruhi dan
cenderung berinteraksi satu sama lain keputusan pembelian konsumen. Berdasarkan analisis dari
bauran pemasaran, Analytical Hierarchy Process (AHP) digunakan untuk mengatur strategi
pemasaran yang tepat apel Malang di Giant MOG menurut manajemen MOG raksasa. AHP adalah
metode untuk peringkat alternatif keputusan dan memilih yang terbaik ketika pengambil keputusan
memiliki beberapa kriteria (Taylor 2004). Keuntungan dasar menggunakan struktur hirarki adalah
bahwa pemahaman level tertinggi diperoleh dari interaksi antara berbagai tingkat yang lebih rendah
(Siqueira et al., 2008) Harga adalah variabel bauran pemasaran yang paling berpengaruh terhadap
keputusan pembelian konsumen di Malang apel MOG raksasa sehingga strategi Malang apel
pemasaran harus fokus pada harga. Menurut Produk Supervisor Raksasa MOG sebagai responden,
ada yang 3 faktor harus dipertimbangkan untuk menentukan strategi harga untuk
Malang apel pemasaran, biaya yaitu, persaingan, dan permintaan. Dalam menentukan harga apel
Malang, Giant MOG harus mempertimbangkan biaya yang terlibat, jika tidak mungkin tidak ada
keuntungan yang akan dibuat. Raksasa MOG juga harus menentukan harga apel Malang
berdasarkan harga pesaing jika berpikir bahwa konsumen lebih cenderung membeli Apel Malang
pada pesaingnya. Penentuan harga apel Malang dapat mempengaruhi permintaan apel sehingga
permintaan yang harus dipertimbangkan oleh raksasa MOG dalam menentukan harga apel Malang.
Setiap faktor memiliki sama strategi harga yang dapat dipertimbangkan dalam menentukan strategi

untuk apel Malang di Giant MOG. Strategi yang mengikuti harga pesaing untuk menghindari
persaingan yang tidak sehat, harga yang aneh untuk mengesankan harga konsumen sensitif,
harga diskon yang dilakukan ketika raksasa MOG adalah memiliki tingkat tinggi persediaan apel
Malang, dan promosi pricing untuk mengesankan konsumen untuk membeli lebih banyak apel
Malang.Preferensi responden antara faktor dan antara strategi ditentukan dengan membuat
berpasangan perbandingan di mana responden diperiksa dua strategi harga Malang apel pemasaran
dengan mempertimbangkan salah satu faktor dan menunjukkan preferensi. Perbandingan ini dibuat
dengan menggunakan skala preferensi, yang memberikan nilai numerik untuk berbagai tingkat
preferensi. Skala preferensi standar yang digunakan untuk AHP adalah 1-9 skala yang terletak
antara "sama pentingnya" untuk "hal yang sangat penting" (Saaty dan Vargas 2012).
Hasil penentuan strategi harga Malang apel pemasaran menggunakan metode AHP berdasarkan ahli
putusan dinyatakan dalam skala rasio sembilan poin ditunjukkan pada Gambar 1 dengan rasio
konsistensi (CR) di bawah 0,1. CR
Berdasarkan hasil AHP, bobot tertinggi faktor yang dipertimbangkan dalam strategi harga adalah
permintaan dengan berat 0,36, harga sementara aneh adalah bobot tertinggi strategi harga alternatif
Malang apel pemasaran MOG raksasa. Ini berarti bahwa permintaan adalah faktor yang paling
penting yang harus dipertimbangkan oleh raksasa MOG di menentukan harga apel Malang.
Permintaan konsumen pada harga akan berhubungan dengan perilaku
konsumen untuk produk. Konsumen akan lebih tertarik untuk membeli apel Malang jika
manajemen Raksasa MOG menerapkan harga aneh yang secara psikologis mempengaruhi harga
konsumen sensitif. konsumen akan berpikir bahwa harga 3.499 rupiah lebih murah daripada harga
3.500 rupiah