The development of market oriented batik products based on customer buying intention (industrial center of Batik Sragen Indonesia)

The research aims to produce batik product in accordance with the costumers buying intention which has market oriented and to recognise the correlation model of marketing mix (product, price, promotion, distribution) with buying intention at the Industrial Center of Batik (SIB), Masaran District, Sragen, Indonesia.

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THE DEVELOPMENT OF MARKET ORIENTED BATIK PRODUCTS BASED ON CUSTOMER BUYING INTENTION (INDUSTRIAL CENTER

OF BATIK SRAGEN INDONESIA) Adcharina Pratiwi*, Asri Laksmi Riani, M Harisudin, Sarah Rum HP

Post Graduate Program, Sebelas Maret University of Surakarta Indonesia

*Corresponding Author Email: pratiwiadcharina@gmail.com

ABSTRACT

The research aims to produce batik product in accordance with the costumers

buying intention which has market oriented and to recognise the correlation model of marketing mix (product, price, promotion, distribution) with buying intention at the Industrial Center of Batik (SIB), Masaran District, Sragen, Indonesia

This researchuses exploratory methods and survey methods where two-hundred

(200) consumers who understand the problem of batik are being the research samples.The study was conducted from January to August 2019 Data were documented and analyzed using conjoint analysis and SEM analysis

The results showed that the batik products in Sragen Indonesia were very good in

quality, the prices were affordable and cheap, the promotions were quite good and the distribution of Sragen batik was quite broad There is a significant correlation between marketing mix (product, price, promotion and distribution) and market-oriented consumer preferences

It is concluded the product has a correlation of 0.493, price of 0.697, promotion

of 0.546 and distribution of 0414 to market-oriented consumer buying intention.Batik products that consumers desire are characterized by: (1) Product variables: (a) fabric made from cotton; (b) feature patterned combination of modern-traditional; (c) washed not fade; (d) fabric size of 115 cm x 240 cm; (e) can last 3-5 years; (f) printed batik; (g) contrast color combinations; (h) brand to order; (i) made by a well-known businessman; (j) good quality and affordable prices; (2) Price variables, including: (a) selling price fromRp 101,000 up to Rp 250,000 per piece; (b) cash payment system; (c) giving a discount at the time of purchase; (d) lower prices than similar products sold in the market; (3) Promotional variables, including: (a) advertising on social media / internet and making signboards; (b) sold in stores / boutiques and also uses marketing personnel; (c) actively participate in the event; (d) CSR activities; (e) advertising is widely known by the people of Indonesia; (4) Variable distribution, including: (a) sold at every store in all regencies / cities in Indonesia; (b) timely

delivery of goods; (c) sales can be through online stores; (d) batik products are sold

in stores / outlets outside Sragen City

Keywords: product, batik, buying intention, consumer, market oriented

Cite this Article: Adcharina Pratiwi, Asri Laksmi Riani, M Harisudin, Sarah Rum

HP, The Development of Market Oriented Batik Products Based on Customer Buying

Intention (Industrial Center of Batik Sragen Indonesia), International Journal of Management (IJM), 11 (3), 2020, pp 373–389

http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=11&IType=3

1 INTRODUCTION

Indonesian batik is a historical fact that proves the existence of Indonesian batik until present Because batik has been a tough foundation for the existence of batik in Indonesia, it is worthy

of being recognized as an Indonesian cultural heritage by the United Nations Educational, Scientific and Cultural Organization (UNESCO) in 2009 (Pratiwi, 2019) It makes the Indonesian people very proud and excited The government issued a regulation on the conduciveness of the development and preservation of national batik in accordance with

Permendagri number 53/2009 on the use of batik in government agencies, contributing

significantly in opening demand for sustainable batik and domestic batik production

Permendag number 86/2015 concerning imports of textiles, textile products and batik motifs

as a form of maintaining the production and marketing of batik in the country Perpres

number 44/2016 concerning to business fields, regulates investment in various business fields,

to prevent monopoly capital in small businesses including batik (Pratiwi, 2019)

Nowadays, batik entrepreneurs have been connected with all the millennium power The market which was once limited by distance and time is now expanded indefinitely within the sales of its products (Suranto, 2019) The market that is around batik entrepreneurs who have been considered as their territory, now it belongs together with competitors without distance and time limits, even competitors can bring their products to markets in our region any time The development of batik businesses requiresto increase efficiency and technological innovation in the creative industries in all sectors, including the components of human-ware, techno-ware, organ-ware and info-ware Human-ware component is a technology contained in human beings, in the form of knowledge, skills, attitudes and behaviors as well as enthusiasm,

so humans create technology to help themselves to work better and be more productive/creative Techno-ware has the meaning as a technological component contained in the machinery and production equipment used in human life Organ-ware is interpreted as the perceived role of technology contained in institutional, organizational and management Organization is to produce processes and synergies to move the wheels of the organization in

a management, the cooperation that is built takes place in a more orderly, effective and efficient manner Info-ware is technology role contained in a documentation, such as: images, diskettes, microfilm, books, and magazines The existence of documentation, repetition of the creation of technology, of course there is always innovation and there is no plagiarism (Suranto, 2019)

The millennium era has provided given capacity that can be utilized independently by every individual including batik entrepreneurs Right now business actorscanaccess various information which is relevant to their needs, such as: government regulations on batik businesses, capital sources, supply and demand of the batik market, and trends in batik motifs

It is also to take advantage of the power in the network (online), such as: social media to interact with customers and online sales

In Sragen, batik entrepreneursstill experience difficulties in different levels, in terms of: capital, human resource management, technology access, production processes, marketing, promotion, online mastery (network), bank access (Setiawati, 2015; Ministry of Industry and Trade, 2015; Novitasari, 2017) Based on surveys in direct pre-research on batik entrepreneurs

in Masaran District area, there are common problems faced by the entrepreneurs: (1) low capital, (2) lack of technology, (3) low market access, (4) tight sales competition, (5) ) weak sales strategy, (6) small number of customers, (7) weak utilization of social media networks, (8) designs or motives that are less recent, (9) the number of middlemen or re-sellers so that prices increase, (10) destinations batik tourism has not run yet

According to Raf (2012), the factors that influence the development of batik small industry creativity are: (1) creative HR variables: motivation, talent/interest, communication, and competence; (2) creative work variables: include work, leadership, and entrepreneurship; (3) organizational context variables, namely: company performance, policies, organizational structure and culture, communication systems; (4) business environment variables, namely: empowerment of external resources, technology, competition, and government regulations; (5) product innovation variables, namely: design, materials, tools, and utilization of batik waste

Arfan et al., (2008) research shows that the factors that influence the development of batik industry creativity are reliable human resources and the role of government The results of Daryono&Wahyudi's research (2008) show that small and medium industries really need the role and intervention of the government in increasing competitiveness, regulations, or rules that favor the small industry in granting credit, increasing the superiority of batik and the quality of batik products, innovation and price management

The results of Im& Workman's (2004) research indicate that the creativity of new products and sales shows the correlation between market orientation and marketing success Octavia's (2015) state that factors that influence the success of product sales (promotion, price, location and distribution) and yielded results, Jambi batik products are able to come through the export market

This research is expected to provide a solution to the success of market-oriented batik marketing business, so it is needed: (1) what kind of consumer buying intention of batik products are expected, (2) know the correlation and influence of marketing models (marketing mix) on the preferences of market-oriented batik consumers , sothe correlation of marketing variables can be seen, in order to make the research results become input, reference in marketing development, and standardization of batik making as desired (consumer preferences) for batik products at the Batik Industrial Center (SIB) of Masaran District, Sragen, Indonesia

2 LITERATURE REVIEW

2.1 The Meaning of Batik

Etymologically, batik is a series of words 'mbat' and 'tik', 'mbat' in Javanese means 'blowing'

or throwing repeatedly, while 'tik' is derived from the word So batik means throwing dots repeatedly on the fabric, so that over time the points coincide in forming lines and motifs using canting and wax as materials (Purwodarminto, 1990) Batik is referred to as writing, because the batik technique uses a canting tool that can discharge fluids in the form of nights and is done like people write, in the language of manners the word 'nyerat' is translated as writing or writing and painting or painting The art of batik is the art of painting, a batik artist has the ability to paint ornaments (motifs) Batik is identified with painting as it applies to written batik

In terms of development, batik has begun to be known since the Majapahit era and the period of the spread of Islam, batik worn by the king and his family and followers By these followers, batik was then taken out of the palace and developed in society today Based on history, the period of the development of batik can be grouped as follows (Ministry of Industry and Trade, 2015)

(a) Period of the Majapahit Kingdom

Based on historical development, batik has evolved since the days of Majapahit Mojokerto was the center of the Majapahit kingdom where batik was known at that time TulungAgung

is a city in East Java which is also recorded in the history of batik Batik Mojokerto and TulungAgung are heavily influenced by Yogyakarta batik This happened because when the Dutch colonial army with Prince Diponegoro's troops, a part of the Kyai Mojo army withdrew eastward in the Majan area Therefore, the characteristic of Kalangbret batik from Mojokerto

is almost the same as Yogyakarta batik, which is basically white and the color is light brown and dark blue (Ministry of Industry and Trade, 2015)

(b) Period of the Spread of Islam

BatoroKatong, a Raden descendant of the Majapahit kingdom, brought Islamic teachings to Ponorogo, East Java The development of Islam in Ponorogo was a boarding school located in the Tegalsari area which was nurtured by KyaiHasanBasri Batik at that time was still limited

in the palace environment and finally brought batik out of the palace and flourished in Ponorogo Tegalsari Islamic Boarding School educates students to master fields of study and religion The old batik condition that can be seen now is the Kauman area, namely KepatihanWetan extending to the villages of Ronowijoyo, Mangunsuman, Kertosari, Setono, Cokromenggalan, Duchy, Nologaten, Bangunsari, Cekok, Banyudono and Ngunut (Ministry

of Industry and Trade, 2015)

(c) Solo and Yogyakarta Batik

Solo is a municipality in the province of Central Java Solo as another name for Surakarta is included in the Surakarta Residency Solo has a palace that is Kasunanan and Mangkunegaran

so that the Solo batik culture is very closely related to the Keraton culture Solo is used as a slogan for the development of Central Javanese culture with the symbol "The Spirit of Java" which is a slogan to show deep-rooted determination in preserving Javanese culture

Besides being known for the thickness of Javanese customs, Solo is also known as the batik icon, the Solo batik motif Solo Batik is more popular with keris batik which has already penetrated overseas market share Solo Batik is one of the destinations visited by foreign and domestic tourists when visiting the city of Solo Hadiningrat BatikSolo Tourism production activities are in the Laweyan batik village and Kauman batik village.Kampung Batik Laweyan

is a center or center for batik activities, batik activities have become a daily culture for the community and are usually derived from their ancestral heritage Batik in all forms (motifs) is the identity of the Indonesian people

Making batik is a livelihood for Javanese women, making batik in the Surakarta (Solo) palace is very well known as an exclusive occupation Solo Batik has characteristics, both in the process of stamp and writing Dyes used to make batik using natural ingredients, namely soga Sidomukti Solo batik motifs and Sidoluhur solo batik motifs are examples of the famous Solo written batik patterns Batik motifs have their own meanings, other meanings, different Solo-style batik motifs are created, with the hope that it can bring good to the wearer(Ministry

of Industry and Trade, 2015)

2.2 Market-Oriented Batik

According to Anshori (2011), market-oriented products can be defined as organizational behavior that identifies products according to customer needs, competitor behavior disseminates market information throughout the organization and responds with coordination, time, and profit calculation Andit is also a product with quality designs, suitable for users or consumers, in line needs, price, time and dimensions (Nerver& Slater, 1990), (Putranto, 2003), (Gray et al, 1999)

Market orientation indicators include forming the right positioning, maintaining customer loyalty, gaining new market shares, maximizing sales and creating effective business performance (Moertini, 2005), (Fathonah, 2009) The marketing mix is a combination of four variables, including products, price structures, promotional activities, and distribution systems (Hengki, 2014) The product excellence is divided into three, including the superiority of: (a) the product differentiation or diversity, (b) market segmentation through product marketing, (c) product in market acceptance (Kotler, 2005) Indicators of market-oriented product success include (a) sales volume or revenue, (b) customer growth, which is the increase in the number of consumers, (c) profitability, which is a strategy to increase corporate profits (Ferdinand, 2000)

2.3 Batik Based on Consumer Buying Intention

For batik entrepreneurs, the presence of products is determined by the quality to always be more creative and dynamic based on the market Apart from product attributes, the price also influences consumer purchasing decisions Pricing is one of the decision variables in the marketing mix In case the price is too expensive, the product availability in the market falls, and consumer buying interest tends to decrease It also is one of the determinants of product selection that influences purchase interest (Nainggolan and Heryenzus, 2018)

Research on the marketing mix is closely related to consumer buying intention In general, consumers expected variables include improvements to the product, price, promotion and place Product is related to consumer's desire since it is an attribute that is beneficial in fulfilling needs and satisfies consumers (Bernard, 2009).Prices have a positive and significant effect on consumer buying interest in processed food products (Silaningsihand Utami, 2018), (Dama, 2016), (Meilaniand Simanjuntak, 2012)

Promotional variables play a significant role in consumer buying intention from a marketing mix point of view Promotion influences consumers to like and buy a product It attracts their attention to the products, apart from providing a good buyer response and boost sales in the short and long term It helps in facilitating proper information delivery to consumers on the benefits or advantages of a product, and therefore affect consumers’ interest

in buying the product (Tjiptono, 2007), (Dama, 2016), (Yahya, 2016)

The place is the decision support variable in consumer buying intention based on the marketing mix (Kotler, 2005) Distribution, including the location of product marketing influence consumer buying interest since they want products that can be easily obtained (Tjiptono, 2007) The selection of the right place/location needs attention and several aspects such as access, visibility, traffic, large and maintained parking, expansion, the competitive environment and government regulations needs to be considered

3 RESEARCH METHODOLOGY

This study uses observational analysis using quantitative methods The case study used is an embedded case study embedded (embeded research) that is a case study that has determined the focus of the study in the form of the main variables to be studied based on the objectives

and interests of the study, namely product marketing based on market-oriented consumer buying intention

Quantitative studies are conducted to examine consumer buying intention for batik products Quantitative studies use conjoint analysis with the aim of understanding how respondents develop preferences for a product (batik), and use SEM (Structural Equational Modeling) analysis to analyze the correlation model between marketing mix factors (product, price, promotion, and distribution) and consumer buying intention market-oriented batik (Ghozali, 2011)

This research was preceded by exploratory research and continued with a survey Exploratory research aims to find the attributes and levels that need to be considered by consumers when purchasing batik products After that, quantitative research is conducted by using the conjoint analysis method and SEM to describe and answer the research problem Quantitative data is data in the form of numbers obtained through a questionnaire (score) and secondary data in the form of numbers obtained through observation and documentation According to Ferdinand (2000), it is called as quantitative research because the data are in the form of numbers and the analysis use statistics The preparation of observation guidelines (closed questionnaire) is conducted by rating scale The rating scale is made flexiblebecause instruments with rating scales must be able to interpret each number given to the alternative answers on each instrument item In this study, the rating scale describes the level of consumer attitudes towards each attribute of batik marketing with market orientation, and the score of product variables, price, promotion, distribution, and consumer buying intention

3.1 Research Design

This study uses survey research designthat aims to measure the existing symptoms and help to compare with predetermined criteria This research also uses cross section studies by studying samples from various strata at the same time with consideration that this design is compatible with the problem and research objectives

3.2 Sample

The researcher is oriented towards conducting factual verification in the field, then the number of consumers who are factual verification results are stated as the study population Subjects who participated in the sample were selected by using purposive random sampling There are 200 people as the samples in this study who buy or know the problem of batik

3.3 Analysis Techniques

Data analysis techniques used in this study as follow: (1) descriptive analysis through a questionnaire to explore the sources of respondents, (2) Conjoint Analysis, through a questionnaire to explore the desires (preferences) of consumers to attribute Masaran batik, (3) SEM analysis, through questionnaires to know the correlation between marketing mix variables and consumer buying intention for market-oriented batik products Conjoint analysis

is a multivariate analysis method and began to be developed since 1970 This analysis is used toget a combination or composition of attributes of a new product or service and the oldest one that are most buying intention by consumers Conjoint analysis has the power to measure consumer buying intention because it is able to represent product designs with attributes that have been combined

In this analysis consumers will be required to make an attribute judgment trade-off How much the consumer's buying intention for an attribute is considered sufficient to sacrifice other attributes or if the consumer has considered sacrificing an attribute to get another

attribute, then which attribute is chosen The conjoint analysis process provides a quantitative measure of the level of utilityand the relative importanceof an attribute compared to other attributes Furthermore, these valuescan be used to help in selecting the attributes of a product that will be offered so that it can obtain a product with the most preferred attributes by consumers(Ghozali, 2011)

The next stage, this study uses SEM (Structural Equational Modeling) analysis to analyze the model of the correlation between marketing mix factors (product, price, promotion, and distribution) and market-oriented batik consumer buying intention It is based on the premise that consumers value products by the number of valuesof each separated attribute Utility as a value measurein conjoint analysis is subjective judgment of the unique buying intention of each individual (Ghozali, 2011)

4 RESEARCH RESULTS

4.1 Univariat Analysis of Marketing Mix Factors and Consumers Preferences

4.1.1 Product Variable

There are 10 numbers of questionnaire items used to measure the product, and each item has 7 alternative answer choices It is known that the average score of respondents for product instruments is 58.51 where the highest score is 66 and the highest score is 43 Based on the highest score and the lowest score, a score grouping can be made based on good, sufficient, and less categories as follows

the highest score – the lowest score Interval =

3 = (66 - 43) / 3 = 7,67

Research data score can be classified as follows :

Less = Score 43 up to 43 + 6,67 = 49,67 = 50 Average = Score 51 up to 50 + 6,67 = 56,67 = 57 Good = Score 58 up to 66

Based on the framework, the respondent score towards the product appraisal can be classified as seen in table-1

Table 1 Distribution of Product Variable Frequency

Frequency Percent Valid Percent

Cumulative Percent

V

a

l

i

d

Good 140 70,0 70,0 70,0

Average 26 13,0 13,0 83,0

Less 34 17,0 17,0 100,0

Total 200 100,0 100,0

Source: Analysis result SPSS 22.0

In table -1, it is known that there were 70% of 200 respondents who rated the quality of Sragen batik products was good, 13% of 200 respondents said that the quality of MasaranSragen batik products was average, and 17% who said the quality of MasaranSragen

batik products is still less in quality Based on the data above, it can be concluded that the majority of respondents said the quality of MasaranSragen batik products was good

4.1.2 Price

There are 4 questionnaire items used to measure the price, and each item has 7 alternative answer choices It is known that the average score of respondents for the price instrument is 24.39 The highest score is 28 and the lowest score is 18 Based on the highest score and the lowest score, it can be made grouping of scores based on expensive, average, and cheap, and the results can be seen in table-2

Table 2 Distribution of Price Variable Frequency

Frequency Percent Valid Percent Cumulative Percent

Valid Average 23 11,5 11,5 11,5

Expensive 22 11,0 11,0 22,5 Cheap 155 77,5 77,5 100,0 Total 200 100,0 100,0

Source: Analysis result SPSS 22.0

In table-2 it is known thatthere were 77.5% of 200 respondents who considered that the price of MasaranSragen batik was relatively cheap, there were 11.5% of 200 respondents who said that the price of MasaranSragen batik was average, and there were 11% who said that the price of batik Sragen masses are quite expensive Based on the data above, it can be concluded that the majority of respondents said that the price of MasaranSragen batik was relatively cheap

4.1.3 Promotion

There are 5 numbers of questionnaire items used to measure promotions , and each item had 7 alternative answer choices It is known that the average score of respondents for promotional instruments is 30.07 The highest score is 35 and the lowest score is 21 Based on the highest score and the lowest score, a score grouping can be made based on large, sufficient, and less categories like the method above, and the results can be seen in table-3

Table 3 Distribution of Promotion Variable Frequency

Frequency Percent Valid Percent Cumulative Percent

Valid Large 139 69,5 69,5 69,5

Average 59 29,5 29,5 99,0 Less 2 1,0 1,0 100,0 Total 200 100,0 100,0

Source: Analysis result SPSS 22.0

Table 3 shows that69.5% of 200 respondents thought that the promotion of SragenMasaran batik was large, 29.5%of 200 respondentssaid that the promotion of SragenMasaran batik was average, and 1% said that the promotion of batik Sragen problems are less Based on the data above, it can be concluded that the majority of respondents said that the promotion of SragenMasaran batik was average

4.1.4 Distribution

There are 5 numbers of questionnaire items used to measure the distribution, and each item has 7 alternative answer choices It is known that the average score of respondents for distribution instruments is 27.71 The highest score is 32 and the lowest score is 20 Based on the highest score and the lowest score, grouping of scores can be made based on large, medium, and less categories, and the results can be seen in Table 4

Table 4 Distribution of Distribution Variable Frequency

Frequency Percent Valid Percent Cumulative Percent

Valid Less 7 3,5 3,5 3,5

Large 134 67,0 67,0 70,5 Average 59 29,5 29,5 100,0 Total 200 100,0 100,0

Source: Analysis result SPSS 22.0

In table -4, it is known thatthere were 67% of 200 respondents who considered that the distribution of MasaranSragen batik was classified as large, 29.5% of 200 respondents said that the distribution of MasaranSragen batik was classified as average, and 3.5%said that the distribution of batik Sragen problems are less Based on the data above, it can be concluded that the majority of respondents said that the distribution of MasaranSragen batik was quite large

4.1.5 Consumer Buying Intention

There are 4 numbers of questionnaire items used to measure consumer purchasing power, and each item has 7 alternative answer choices It is known that the average score of respondents for consumer purchasing power instruments is 22.76 The highest score is 26 and the lowest score is 16 Based on the highest score and the lowest score, the grouping of scores can be made based on high, medium, and low categories, and the results can be seen in table-5

Table 5 Distribution of Purchasing Power Variable Frequency

Frequency Percent Valid Percent Cumulative Percent

Valid Low 8 4,0 4,0 4,0

Medium 55 27,5 27,5 31,5 High 137 68,5 68,5 100,0 Total 200 100,0 100,0

Source: Analysis result SPSS 22.0

Table -5 shows that of 68.5% of 200 respondents had a high buy for MasaranSragen batik, 27.5% of 200 respondents had a moderate buying intention for the MasaranSragen batik, and 4% had a low buy for the MasaranSragen batik Based on the data above, it can be concluded that the majority of respondents have a high desire for batik MasaranSragen is quite large

4.2 Feasibility Test and Normality of Data

Each variable in this study should be analyzed used Confirmatory Factor Analysis (CFA) Confirmatory factor analysis is used to test the dimensionality of a construct or variable Before analyzing structural models, model measurements are usually measured to test the validity and reliability of the construct indicators or latent variables by conducting confirmatory factor analysis (CFA)

The data normality test is used to determine whether the sample data is normally distributed or not using the statistical test Z The Z value is obtained by dividing skewness or kurtosis with its standard error This value in AMOS is shown by the Critical Ratio (CR) value The CR value iscompared with the critical value of the Z distribution at α = 5% which

is ± 1.96 If the value of CR> critical Z value, then the data is not normal and vice versa if the value of CR <Z critical data is said to be abnormal

Based on the central limit theorem (central limit theorem) it is said that large samples will follow the normal distribution, even though the population from which the samples were obtained are not normally distributed Since the sample data is large (200 consumers), the sample data follows the normal distribution (Santosa, 2011)

Santoso (2011) added that for SEM models with the number of latent variables (constructs) of is up to five, and each construct is explained by three or more indicators,

100-150 data sample is considered adequate Thus, a total sample of 200 data can be accepted as a representative sample in SEM analysis

4.3 The Significance of the Casuality Relations between Latent Variables

To recognizea causal correlation between latent variables is significant or not, it can be seen from the CR value or based on the p-value as shown in table-6 Based on several model tests,

it is found that there is a significant correlation model among latent variables as seen in the model show figure-1 Furthermore, to determine the significance of the causality correlationamong latent variables, it can be seen from the CR value or based on the p-value as shown in table-6

Table 6 Value CR dan p-ValueFit Model - Scalar Estimates (Group number 1 - Default model)

Maximum Likelihood EstimatesRegression Weights: (Group number 1 - Default model)

PROMOTION < - PRODUCT ,552 ,079 7,001 *** par_27

PRICE < - PRODUCT ,682 ,076 9,016 *** par_26

DISTRIBUTION < - PROMOTIO

N ,436 ,089 4,871 *** par_45 PREFERENCES < - PRODUCT ,483 ,097 5,000 *** par_1

PREFERENCES < - PRICE ,240 ,107 2,248 ,025 par_2

PREFERENCES < - DISTRIBUT

ION ,431 ,088 4,880 *** par_3

Standardized Regression Weights: (Group number 1 - Default model)

Estimate

PROMOTION < - PRODUCT ,546 PRICE < - PRODUCT ,697 DISTRIBUTIO

N < - PROMOTION ,467 PREFERENCE < - PRODUCT ,493 PREFERENCE < - PRICE ,240

PREFERENCE < - DISTRIBUTI

ON ,414

Source: Analysis result SEM 22.0 D:\Δ Smad-Lock (Brankas Smadav) Δ\DISERTASI\BU JUDA JULIA\DISERTASI BARU\DISERTASI SETELAH SEMPRO\motivasi.amw

Table-6 shows the significance of the causality correlationamong latent variables, which can be explained as follows: (1) The product variable has a significant effect on the promotion variable with a path coefficient is 0.546, CR value (7.001)> critical Z (1.96) and a significance level is 0.000 < 0.05 ; (2) Product variables have a significant effect on price variables with a path coefficient is 0.697, CR value (9.016)> critical Z (1.96) and a significance level is 0.000 <0.05 ;

Meanwhile, (3) The promotion variable has a significant effect on the distribution variable with a path coefficient of 0.467, a CR value (4.871)> a critical Z (1.96) and a significance level of 0.000 <0.05 ; (4) The product variable has a significant effect on the consumer buying intention variable with a path coefficient of 0.493, a CR value (5,000)> critical Z (1.96) and a significance level of 0.000 <0.05 ;

Furthermore (5) the price variable has a significant effect on the consumer buying intention variable with a path coefficient of 0.240, a CR value (2.224)> critical Z (1.96) and a