THE EFFECT OF SERVICE QUALITY AND PRICES ON CONSUMER DECISIONS USING WORKSHOP SERVICES A CASE STUDY IN MERAUKE

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1 International Journal of Mechanical Engineering and Technology (IJMET) Volume 9, Issue 12, December 2018, pp , Article ID: IJMET_09_12_025 Available online at ISSN Print: and ISSN Online: IAEME Publication Scopus Indexed THE EFFECT OF SERVICE QUALITY AND PRICES ON CONSUMER DECISIONS USING WORKSHOP SERVICES A CASE STUDY IN MERAUKE Elisabeth Lia Riani Kore Universitas Musamus, Merauke, Indonesia ABSTRACT This study aims to determine the Effect of Service Quality and Price on Consumer Decisions using the services of a Workshop (Study on Various Dinamo Workshop in Jalan Gak Merauke Regency). The sample used as many as 86 respondents, using incidental sampling technique that is accidentally sampling to meet consumers who deserve to be made as respondents. The data sources used are primary data and secondary data while the data collection techniques used include questionnaires, interviews, observation and literature. Measurement of variables in this study using a Likert scale measurement, and the method used is a quantitative method using the SPSS version 23 program with the analysis model used is the method of multiple linear regression analysis. The results showed that Service Quality had no significant effect on consumer decisions, Price had a significant effect on Consumer Decisions, and Service Quality and Prices jointly had a significant effect on Consumer Decisions with a calculated F value of and a significant value of <0.05. The adjusted R square value is or 12%, and the remaining 88% is explained in other variables not examined in this study. Keywords: Service Quality, Prices, Consumer Decisions Cite this Article: Elisabeth Lia Riani Kore, the Effect of Service Quality and Prices on Consumer Decisions Using Workshop Services a Case Study in Merauke, International Journal of Mechanical Engineering and Technology, 9(12), 2018, pp INTRODUCTION Along with the development of the economy and the rapid advancement of technology, the goals and objectives that will be achieved by the organization or company that will hold an activity are growing. Every company is demanded to always run its business and manage its management well. The purpose of the company itself is to maintain survival for development and gain profit. In Indonesia there are various workshops operating, i.e. 1. Dealer shop, which is a workshop for cars and motorcycles with certain brands such as workshops for Toyota, Honda, Suzuki, Yamaha editor@iaeme.com

2 Elisabeth Lia Riani Kore 2. General workshop, which is a workshop that is able to service maintenance and make up on several components in a vehicle. 3. Special service workshops, namely workshops that specialize in maintenance and repair of vehicle and electrical elements, for example: Dynamo start and Ampere dynamo on cars and motorcycles, generators and electro motors. 4. Mobile unit workshops, namely workshops that provide services in the form of repairs in the location of consumer vehicles. This makes the opportunity for the emergence of new companies in the field of workshop services, both dealer workshops, general workshops, special service workshops, and mobile unit workshops, which are increasingly emerging, with the exception of specialized service workshops, which specialize in maintenance and repair for example electric dynamos and dynamo amperes in cars and motors, generators and electro motors. Quality of service is any form of activity carried out by the market in order to meet consumer expectations, quality is a dynamic condition that influences products, services, people, processes and environments that meet or exceed (Tjiptono: 2008) determine consumers to decide to use the product or service offered. Looking at prices from a marketing point of view, prices are monetary units or other sizes (including goods and services) that can be exchanged to obtain ownership rights or use of an item or service (Tjiptono: 2008). For that companies in setting prices need to be carefully calculated, the prices set must be appropriate and in accordance with consumer purchasing power, so consumers will decide to drop the choice of products or services offered. This Aneka Dinamo Workshop on Jalan Gak in Merauke Regency has been established for a long time, namely in 2008, the Aneka Dinamo Workshop received service or repair work until it replaced a new component at Dinamo like a recycle. This workshop accepts various types of dynamos such as: generators, electro motors, start dynamos and amperes in components of cars and motorcycles and various other types of dynamo. In terms of price, the company has actually determined a reasonable or affordable price, there are even special prices such as discounts or discounts for certain customers and consumers. But with the decreasing number of mechanics, it makes it difficult for companies to provide adequate services to consumers or customers. This study aims to determine the effect of service quality and prices on consumer decisions using workshop services (Study on Aneka Dinamo workshop in Jalan Gak Merauke Regency). 2. METHODOLOGY This research took place at Aneka Dinamo Workshop which took place at Jalan Gak, Merauke Regency. The research approach uses a quantitative approach because the data used in this study relates to numbers. The sample in this study were 86 people using incidental sampling technique that is accidentally taking samples of consumers who deserve to be made as respondents. The data sources used are primary data and secondary data while the data collection techniques used include questionnaires, interviews, observation and literature (Betaubun et al., 2018a, 2018b; Fitriani et al., 2018; Kalalo, 2018; Lamalewa et al., 2018a, 2018b; Latuheru and Sahupala, 2018; Maturbongs et al., 2017; Samudro et al., 2018a, 2018b; Samudro et al, 2011; Utama et al., 2018; Sedayu and Mangkoedihardjo, 2018). The variable of this study consists of two variables, namely the independent variable (independent variable) and the dependent variable (dependent variable). Which includes the independent variable is service quality (X1), price (X2), while the dependent variable is the decision (Y). Measurement of variables in this study using a Likert scale measurement, and the method used is a quantitative method using the SPSS version 23 program with the analysis model used is the method of multiple linear regression analysis editor@iaeme.com

3 The Effect of Service Quality and Prices on Consumer Decisions Using Workshop Services a Case Study in Merauke 3. RESULTS 3.1. Multiple Regression Analysis Based on the multiple regression calculation between Service Quality variables (X1), Price variable (X2) and consumer decision (Y) with the help of SPSS version 23 in the calculation can be obtained as follows. Coefficients a Model Table 1. Multiple Regression Analysis Unstandardized Coefficients Standardized Coefficients B Std. Error Beta 1Service quality t Sig. (Constant) Price a. Dependent Variable: Consumer Decisions Source: Data processed SPSS version 23 From the table above shows that the regression coefficients of the independent variables of each variable, namely the Service Quality variable (X1) is Price variable (X2) is and the constant parameter value is Based on the table above, multiple regression equations can be obtained as follows: Y = ɑ + b1x1 + b2x2 + e Y = 14, , ,272 + e The above equation can be explained as follows: 1. Constant value or fixed value of means that if it is not influenced by Service Quality variables (X1) and Price (X1) then the constant value will not experience a change or a fixed value. 2. The regression coefficient value for Service Quality variable (X1) is positive which is equal to 0.085, meaning that if the Service Quality variable increases by 1%, the consumer decision variable will increase by Price Variable coefficient value (X2) is positive that is equal to 0.272, which means that if the price is increased by 1%, the consumer decision variable (Y) will increase by Hypothesis testing Partial Hypothesis testing (t test). The t test is conducted to determine whether there is an influence between the independent variables affecting the dependent variable, namely Service Quality (X1), Price (X1) on consumer decisions (Y) partially (individual). 1. Effect of Service Quality on consumer decisions. From the calculation, the value of tcount for Service Quality variable (X1) is 1,221 by using the 5% error level obtained by ttable of which means that the value of t count <t table is < while the sig value is 0.226> 0.05 then Service quality (X1) There is no influence and is not significant on consumer decisions (Y), it can be concluded that the H1 hypothesis is rejected. 2. Price influence on consumer decisions editor@iaeme.com

4 Elisabeth Lia Riani Kore From the calculation results obtained by the value of t arithmetic for the variable Price (X2) of by using a 5% error level obtained by t table of which means that the value of t count> t table is 3.355> While the sig value is <0.05 then Price (X2) has a significant and significant influence on consumer decisions (Y), it can be concluded that the H2 hypothesis is accepted Simultaneous Hypothesis Testing (F test) The F test is performed to see the effect of independent variables simultaneously or together on the dependent variable. To do the F test can be seen in table 2. 1 Table 2. Simultaneous Hypothesis Testing Results ANOVA a Model Sum of Squares Df Mean Square F Sig. Regression b Residual Total a. Dependent Variable: Keputusan Konsumen b. Predictors: (Constant), Price, Service Quality Source: Research Results, 2017 (data processed in SPSS version 23) To determine Ftable by using a 95% confidence level, ɑ = 5% df 2 (n-k) or 86-3 = 83. The results obtained for the Ftable value are In accordance with the table above shows that Fcount is greater than Ftable, which is Can also be seen in the sig probability, which is = smaller than This means that H3 on the hypothesis of the independent variable Service quality (X1) and Price (X2), simultaneously or jointly influential and significant effect on the dependent variable of consumer decision (Y) Coefficient of Determination (Adjusted R2) This coefficient aims to find out how much the ability of an independent variable to influence the dependent variable. The test results of the coefficient of determination can be seen in table 3 as follows: Table 3. Determination Coefficients Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate a a. Predictors: (Constant), Price, Service Quality Source: Research Results, 2017 (data processed in SPSS version 23) From the processed data above, it can be seen that the adjusted R square value is or 12% and the remaining 88% is explained by other variables not examined in this study. 4. DISCUSSION 4.1. Effect of Service Quality on Consumer Decisions Variable Quality of service is formed by five indicators namely Reliability, Responsiveness, Assurance, Empathy, Physical Evidence. The results showed that partially Service Quality had no effect and was not significant towards Consumer Decisions. The results of this study can be proven by looking at the value of tcount obtained at which is smaller than the table of editor@iaeme.com

5 The Effect of Service Quality and Prices on Consumer Decisions Using Workshop Services a Case Study in Merauke with a significant level of which is greater than This is because service quality is not a priority for consumers to choose from using various dynamo workshop services, there are still many other variables that are considered by consumers in deciding to use various dynamo workshop services, can be seen from respondents' answers that many do not agree with the statement which is attached to indicators of physical evidence and empathy. Theory of (Tjiptono, 2001), service quality can be interpreted as an effort to fulfill the needs and desires of consumers and the accuracy of delivery in balancing consumer expectations, but in practice in research contrary to the theory that the fact that service quality has no influence on consumer decisions in the workshop of Aneka Dinamo Merauke. The results of this study are in contrast to previous studies conducted by Boby Steven IRAN 2008 which get significant and significant results on the test so that it can state that Service Quality has an influence on Consumer Decisions Price Influence on Consumer Decisions Price variable is formed by three indicators, namely, determination of selling prices, price elasticity, and growth in competitor prices. The results of the study show that partially the price has a significant and significant effect on Consumer Decisions. The results of this study can be proved that the value of tcount is with a significant level of and a ttable of The results of this study are in line with the research conducted by Satriadi 2015 which received positive and significant results on the test so that it can state that prices have an influence on Consumer Decisions. This theory is also supported by opinions (Djamali et al., 2018; Kotler and Armstrong 2001) which say that price is a sum of money that must be exchanged charged on a product or service or a number of values that consumers exchange for benefits because they own or use the product or service Effect of Service Quality and Price on Consumer Decisions The results of this study indicate that the value of F count is greater than F table 3.11, then Ha is accepted and H0 is rejected. This means that together (simultaneously) Service Quality and Price have an effect on and significantly influence Consumer Decisions on Consumers of Various Dynamo Workshops in Jalan Gak, Merauke Regency. 5. CONCLUSIONS AND RECOMMENDATIONS Based on the results of the analysis and hypothesis testing of all data obtained, it can be concluded that Service Quality has no effect and is not significant on Consumer Decisions on Various Dinamo Workshops in Jalan Gak, Merauke Regency. The price has an effect on and is significant to the consumer's decision on the Various Dynamo Workshop on Jalan Gak Kabupten Merauke. Of the two variables, namely Service Quality and Price together, it has the same effect on consumer decisions on Aneka Dinamo Workshop in Jalan Gak, Merauke Regency. From the results of the research that has been done, the suggestion that can be conveyed to the company or the Various Dinamo Workshop in Jalan Gak Merauke Regency is that the workshop or company should pay more attention to price variables because the price is very dominant in influencing consumer decisions in choosing to use workshop services in various dynamo workshops. The results of the determination coefficient are 0.120, indicating the ability of the independent variable service quality and price to affect the dependent variable of consumer decisions is only 12% so the influence of the two variables is still very small, therefore researchers who will examine the same theme should increase the number of independent variables (independent), so that the results of the study can be better at proving the hypothesis editor@iaeme.com

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7 The Effect of Service Quality and Prices on Consumer Decisions Using Workshop Services a Case Study in Merauke [17] Samudro, H., M. Faqih, E. Sudarma. (2011). Green architecture criteria for high-rise building that serves as a rental office in the city of Surabaya. Journal of Applied Sciences Research 7(5): [18] Satriadi. (2015). Pengaruh Promosi dan Harga terhadap Keputusan Konsumen membeli HP Samsung pada Toko Rejeki Seluler Merauke. Skripsi. Universitas Musamus Merauke. [19] Sedayu, A. and Mangkoedihardjo, S. (2018). Performance Evaluation of Housing Contractor by Applying the Principles of Environmentally Friendly Infrastructure. International Journal of Civil Engineering and Technology, 9(4), pp [20] Utama, YJ; Ambariyanto, A; Samudro, G. (2018). Current practices of waste management at Universitas Diponegoro campus, Indonesia. E3S Web of Conferences 48, (2018) editor@iaeme.com