The Impact of Store Formats and Sales Promotion Towards Consumer’s Purchase Decision: Case Study of Indomaret in Bandung City

Abstract

The main goal of this study is to investigate the influence of store formats and sales promotion on consumers selecting retail store. The data was collected through an online survey of 230 Indomaret consumers in Bandung, and were analyzed using SmarPLS 3. The results reveal that both store format and sales promotion significantly influence on consumers’ purchase decision. This current study also shows the large number of students as Indomaret consumers with indicators such as coupons, shopper cards, products line, and customer care that strongly influence on purchase decision. Limited to one city and one retail store only. The research hasn’t been extended to other marketing communication mix tools such as Public relations, Personal selling, direct marketing, media Advertising impact or effect. The research results of the present study will contribute to better understanding the incidence of consumers’ perception of store formats benefits on their decision to make shopping over sales promotion, thus allowing retailers to perform sales promotion as a perfect technique for boosting their sales effectively. Although sales promotion better impacts consumers’ purchase decision than store format, it’s a short-term tool that should be used with great caution so as not to tarnish the brand image. Consequently, this research contributes to the advancement of knowledge, particularly in retailing, by establishing the effect of the store format and sales promotion on consumers' purchasing decision in an Asian country.