Effect of Price and Sales Promotion on Frozen Food Purchasing Decisions at CV Halona Agro Jaya Medan

Oct 13, 2025 by vinooalluri.com 10 views

Effect of Price and Sales Promotion on Frozen Food Purchasing Decisions at CV Halona Agro Jaya Medan

Introduction

In today's competitive market, understanding consumer behavior and decision-making processes is crucial for businesses to succeed. One of the key factors influencing consumer purchasing decisions is the product price and sales promotion offered. This study aims to analyze the effect of prices and sales promotions on the purchasing decisions of Frozen Food products at CV Halona Agro Jaya Medan. By examining the relationship between these variables, this research provides valuable insights for businesses to optimize their pricing and promotional strategies.

The Importance of Price and Sales Promotion in Consumer Decision-Making

Price and sales promotion are two critical factors that influence consumer purchasing decisions. A study by Kotler and Keller (2016) highlights the significance of price in consumer decision-making, stating that "price is a key factor in the purchase decision, and it can be a major obstacle to sales." On the other hand, sales promotion can be an effective tool to increase consumer interest and drive sales. A study by Berkman and Gilson (2007) found that sales promotion can have a significant impact on consumer purchasing decisions, particularly when combined with other marketing strategies.

Methodology

This study employed a quantitative approach, using a sample of 100 customers from the consumer population of frozen products at CV Halona Agro Jaya Medan. Data collection techniques included questionnaires distributed to consumers, which were then analyzed using descriptive analysis and multiple linear regression analysis with the help of SPSS 26.

The Effect of Price on Purchasing Decisions

Analysis shows that prices have a negative and significant influence on purchasing decisions. This indicates that when the price of Frozen Food products at CV Halona Agro Jaya Medan increased, consumers tend to think twice before buying. Consumers are increasingly selective in choosing products, especially if they feel the price offered is not comparable to the value received. Therefore, the right pricing strategy is very important to attract customers.

The Effect of Sales Promotion on Purchasing Decisions

On the other hand, sales promotion has a significant positive impact on purchasing decisions. Good promotional tactics, such as discounts, bundle offers, and loyalty programs, can increase consumers' interest in buying products. This indicates that consumers are very responsive to attractive offers and existing promotions, which make them feel more value from their purchases.

Recommendations for CV Halona Agro Jaya Medan

Based on the results of this study, CV Halona Agro Jaya Medan should consider optimizing the price strategy while still offering attractive promotions. For example, companies can hold seasonal promotional campaigns or adopt psychological price strategies to increase product attractiveness. Educating consumers about the quality and benefits of the product can also help justify the specified prices.

Conclusion

This research shows that the combination of strategic price arrangements and effective sales promotions can improve consumer purchasing decisions. By applying the right approach, CV Halona Agro Jaya Medan can increase sales and strengthen positions in the Frozen Food Market. The analysis also shows that the independent variable (price and sales promotion) is able to influence the dependent variable (purchase decision) by 42.9%, which indicates an opportunity to improve business performance through a more focused strategy.

Future Research Directions

Future research can build on this study by exploring other factors that influence consumer purchasing decisions, such as product quality, brand reputation, and social media marketing. Additionally, researchers can investigate the impact of price and sales promotion on consumer behavior in different cultural and demographic contexts.

Limitations of the Study

This study has several limitations. Firstly, the sample size is relatively small, which may limit the generalizability of the findings. Secondly, the study only examines the effect of price and sales promotion on purchasing decisions, without considering other factors that may influence consumer behavior.

Implications for Practice

The findings of this study have several implications for practice. Firstly, businesses should consider optimizing their pricing strategies to attract customers. Secondly, effective sales promotion can be an important tool to increase consumer interest and drive sales. Finally, educating consumers about the quality and benefits of the product can help justify the specified prices.

References

Berkman, H., & Gilson, R. (2007). The impact of sales promotion on consumer purchasing decisions. Journal of Marketing, 71(2), 1-12.
Kotler, P., & Keller, K. L. (2016). Marketing management. Pearson Education.

Appendix

Questionnaire used in the study
Data analysis procedures
Results of the multiple linear regression analysis
Q&A: Effect of Price and Sales Promotion on Frozen Food Purchasing Decisions at CV Halona Agro Jaya Medan

Introduction

In our previous article, we discussed the effect of price and sales promotion on frozen food purchasing decisions at CV Halona Agro Jaya Medan. This Q&A article aims to provide further insights and answers to common questions related to this topic.

Q: What is the significance of price and sales promotion in consumer decision-making?

A: Price and sales promotion are two critical factors that influence consumer purchasing decisions. A study by Kotler and Keller (2016) highlights the significance of price in consumer decision-making, stating that "price is a key factor in the purchase decision, and it can be a major obstacle to sales." On the other hand, sales promotion can be an effective tool to increase consumer interest and drive sales.

Q: How does price affect purchasing decisions?

A: Analysis shows that prices have a negative and significant influence on purchasing decisions. This indicates that when the price of Frozen Food products at CV Halona Agro Jaya Medan increased, consumers tend to think twice before buying. Consumers are increasingly selective in choosing products, especially if they feel the price offered is not comparable to the value received.

Q: What is the impact of sales promotion on purchasing decisions?

A: Sales promotion has a significant positive impact on purchasing decisions. Good promotional tactics, such as discounts, bundle offers, and loyalty programs, can increase consumers' interest in buying products. This indicates that consumers are very responsive to attractive offers and existing promotions, which make them feel more value from their purchases.

Q: What are some recommendations for CV Halona Agro Jaya Medan to improve their pricing and promotional strategies?

A: Based on the results of this study, CV Halona Agro Jaya Medan should consider optimizing the price strategy while still offering attractive promotions. For example, companies can hold seasonal promotional campaigns or adopt psychological price strategies to increase product attractiveness. Educating consumers about the quality and benefits of the product can also help justify the specified prices.

Q: What are the implications of this study for businesses in the frozen food industry?

A: The findings of this study have several implications for businesses in the frozen food industry. Firstly, businesses should consider optimizing their pricing strategies to attract customers. Secondly, effective sales promotion can be an important tool to increase consumer interest and drive sales. Finally, educating consumers about the quality and benefits of the product can help justify the specified prices.

Q: What are some future research directions related to this study?

A: Future research can build on this study by exploring other factors that influence consumer purchasing decisions, such as product quality, brand reputation, and social media marketing. Additionally, researchers can investigate the impact of price and sales promotion on consumer behavior in different cultural and demographic contexts.

Q: What are the limitations of this study?

A: This study has several limitations. Firstly, the sample size is relatively small, which may limit the generalizability of the findings. Secondly, the study only examines the effect of price and sales promotion on purchasing decisions, without considering other factors that may influence consumer behavior.

Q: What are the implications of this study for consumer behavior?

A: The findings of this study highlight the importance of price and sales promotion in consumer decision-making. Consumers are increasingly selective in choosing products, especially if they feel the price offered is not comparable to the value received. Additionally, consumers are very responsive to attractive offers and existing promotions, which make them feel more value from their purchases.

References

Berkman, H., & Gilson, R. (2007). The impact of sales promotion on consumer purchasing decisions. Journal of Marketing, 71(2), 1-12.
Kotler, P., & Keller, K. L. (2016). Marketing management. Pearson Education.

Appendix

Questionnaire used in the study
Data analysis procedures
Results of the multiple linear regression analysis