Location and Price Perception Influence Consumer Purchase Decisions, Indonesian Study Finds
Consumers are more likely to make purchasing decisions when businesses offer accessible locations, effective personal selling, and fair pricing, according to new research from Universitas Bhayangkara Jakarta Raya. The study, conducted by Pratiwi Nilasari and Anwar, was published in 2026 in the Indonesian Journal of Economic & Management Sciences.
The research examined how store location, personal selling, and price perception shape consumer purchase decisions in Indonesia’s increasingly competitive retail and service market. Although the statistical results did not show strong significance due to limited response variation, the study still found positive relationships between all three marketing factors and customer buying decisions.
The findings are relevant for businesses operating in highly competitive urban markets where consumers have many alternatives and increasingly compare convenience, service quality, and perceived value before making purchases.
Competition in Retail and Service Businesses Continues to Intensify
Indonesia’s retail and service sectors have changed rapidly in recent years due to urbanization, digital commerce, and shifting consumer behavior.
Businesses today compete not only through product quality but also through customer experience, accessibility, communication strategies, and pricing approaches.
Consumers increasingly evaluate whether purchasing a product or service feels convenient, trustworthy, and worth the money spent. This makes location strategy, sales interaction, and pricing perception important competitive factors.
According to the study, consumers rarely assess price alone. They compare prices with expected benefits, competing offers, and personal expectations regarding value and fairness. Similarly, purchasing decisions are influenced by how easily consumers can access stores and how effectively salespeople communicate with them.
The research highlights that modern marketing strategies must combine physical accessibility, relationship-building, and perceived value rather than relying on only one factor.
Survey of 50 Consumers Using PLS-SEM Analysis
The study used a quantitative cross-sectional survey involving 50 respondents. Researchers evaluated four main constructs:
- Location
- Personal selling
- Price perception
- Purchase decision
Each variable was measured using five reflective indicators on a five-point Likert scale. Researchers analyzed the data using Partial Least Squares Structural Equation Modeling (PLS-SEM), a statistical approach commonly used to evaluate relationships between multiple variables in consumer behavior studies.
The study focused on three key hypotheses:
- Better location increases purchase decisions
- Stronger personal selling improves purchase decisions
- Positive price perception strengthens purchase decisions
Researchers also measured predictive relevance and internal consistency to evaluate the reliability of the analytical model.
Consumers Rated Location, Price, and Service Highly
The survey results showed very high consumer evaluations across all variables studied.
Average scores included:
- Purchase Decision: 4.796
- Location: 4.776
- Price Perception: 4.740
- Personal Selling: 4.732
All scores were measured on a five-point scale, indicating respondents generally gave very positive evaluations regarding accessibility, salesperson interaction, price fairness, and purchasing willingness.
The study also found low variability in responses, meaning most respondents answered consistently and positively.
One of the strongest indicators involved price perception. Respondents strongly agreed that prices aligned with the value and benefits received. The indicator labeled X3_P1 recorded the highest average score at 4.940.
According to the researchers, this suggests that consumers increasingly prioritize perceived fairness and value-for-money when making purchase decisions.
Positive Relationships Found Across All Marketing Factors
The structural analysis found that all three variables had positive directional effects on purchase decisions:
- Location → Purchase Decision: β = 0.240
- Personal Selling → Purchase Decision: β = 0.240
- Price Perception → Purchase Decision: β = 0.252
Among the three variables, price perception showed the strongest relationship with purchase decisions.
However, the effects were not statistically significant at the 5 percent confidence level because respondents’ answers were highly concentrated at the upper end of the scale. Most participants already rated all variables between 4 and 5, leaving limited variation for stronger statistical differentiation.
The model explained 37.2 percent of the variation in purchase decisions, indicating moderate explanatory power.
According to Pratiwi Nilasari and Anwar from Universitas Bhayangkara Jakarta Raya, the findings remain consistent with established marketing theory because consumers generally respond positively to convenience, effective communication, and fair pricing.
The researchers noted that “accessibility, salesperson effectiveness, and price fairness” should still be treated as complementary managerial strategies despite the absence of strong statistical significance in this sample.
Accessible Locations Still Matter in the Digital Era
One of the study’s key insights is that physical location remains important even as digital commerce expands.
The research explains that location quality includes:
- Ease of access
- Visibility
- Parking availability
- Transportation convenience
- Compatibility with customer routines
Businesses located in accessible areas may reduce what researchers call the “non-monetary cost” of purchasing, including time, effort, and transportation barriers.
The findings suggest that consumers still value convenience and efficiency when choosing where to shop or obtain services.
Personal Selling Builds Trust and Reduces Consumer Uncertainty
The research also highlights the continued importance of personal selling in modern business environments.
According to the study, direct communication between salespeople and customers helps:
- Build trust
- Reduce uncertainty
- Explain product benefits
- Strengthen perceived product suitability
- Improve customer confidence
This becomes especially important when consumers face uncertainty about products, services, or pricing.
The researchers argue that relationship-oriented selling approaches may increase purchase likelihood because consumers feel more informed and reassured.
Implications for Businesses and Marketing Strategy
The findings provide practical insights for businesses competing in Indonesia’s crowded retail and service markets.
The study recommends that managers:
- Improve store accessibility and convenience
- Train salespeople in relationship-building communication
- Develop fair and transparent pricing strategies
- Strengthen perceived customer value
- Integrate location, sales interaction, and pricing into unified marketing strategies
The research also suggests that businesses should avoid relying solely on discounts or aggressive pricing competition. Instead, companies should focus on creating a balanced customer experience that combines convenience, trust, and perceived value.
Researchers further recommended expanding future studies by including additional variables such as product quality, service quality, brand image, customer trust, and promotional intensity.
Author Profile
Pratiwi Nilasari is an academic affiliated with the Faculty of Economics at Universitas Bhayangkara Jakarta Raya. Her research focuses on marketing management, consumer behavior, retail strategy, and customer decision-making. She collaborated with Anwar on research examining factors influencing consumer purchase decisions in Indonesian retail and service industries.
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