The Influence of Price, Location and Word Of Mouth on Purchasing Decisions at Green Resto

The rise of marketing activities in the MSME (Micro, Small and Medium Enterprises) sector is something that is familiar even though it is inseparable from competition in the business world. Consumer purchasing decisions are important for SMEs, one of which is the Green Resto restaurant in Surabaya. This study measures the extent to which Purchase Decisions can be measured through the variables Price, Location, and Word of Mouth. This research is a quantitative research using multiple linear regression data analysis techniques assisted by the SPSS 25 program. The data from this study were taken from the results of questionnaires distributed to 97 respondents who are customers of Green Resto. The results showed that Price, Location and Word of Mouth had a partial or simultaneous and significant effect on purchasing decisions at Green Resto. Where the price has a partial and significant effect on purchasing decisions at Green Resto. Location has a partial and significant effect on purchasing decisions at Green Resto. Word of Mouth has a partial and significant effect on purchasing decisions at Green Resto. And as a whole it can be said that Price, Location and Word of Mouth have a simultaneous and significant effect on purchasing decisions at Green Resto.


Introduction
Marketing is a managerial and process that makes individuals or groups get what they need and want by creating, offering and exchanging products of value to other parties or all activities related to the delivery of products or services from producers to consumers.The rise of marketing activities in the MSME sector is something that is familiar even though it cannot be separated from competition in the business world.MSMEs also have levels ranging from small to high, but in reality this Green Resto is no less than MSMEs who are already middle and high.By presenting a variety of existing culinary delights, it is possible that this Green Resto business will be able to have different characteristics, especially in terms of taste.Now the purchase decision becomes a measure of business success.[14] Purchasing decision is a very important thing to note because it is one of the considerations to influence consumers.One of the purchasing decision problems for consumers is evaluating whether the product is appropriate.Decision making is a process of several alternatives to solve a real problem.Then consumers can determine the attitude to be taken next.In that case it really determines someone to buy or not a product he wants.
The success of a business cannot be separated from the factors that influence a purchasing decision where before making a purchase, every consumer must always consider or think about price.The price offered to consumers is certainly something that must be considered carefully and precisely.[9] The right price can increase customer buying interest, otherwise if the price is too high enough it will reduce the level of purchasing decisions.Pricing by sellers or traders will affect the income or sales that will be obtained or even losses that will be obtained if the decision in setting the selling price is not considered on target.
Another thing that becomes the center of attention besides the price is the location problem at this Green Resto.The decision to choose an location is very important for the future.The first is regarding resources that can maintain consistency in cooperating in the future, then whether the location is only available for rent or purchase.Second, location will affect future progress.[8] The area that has been selected must be able to develop from an economic point of view so that the producer can maintain the viability of his business.And third, the surrounding environment can change and if there is a bad location value, the location must be shifted immediately.However, strategic locations help businesses succeed because they are easily accessible and encourage consumers to buy goods that will be sold by traders.And reinforced by previous research, with the conclusion that if the producer has made updates to the taste, then the perception of location is not a big thing for consumers.
Factors that are no less important besides price and location, which can influence purchasing decisions are Word of Mouth (WOM).This traditional marketing strategy is still a definite reference in conveying personal information.According.With this Word of Mouth can also have a positive or negative impact on the recipient of the information, Word of Mouth will be positive if the consumer is satisfied and makes repeated purchases and will be negative when the consumer is not satisfied and prefers to switch to a restaurant they trust. .So this will be an opportunity for producers to give a good image to consumers who will or make purchasing decisions at this Green Resto.This Green Resto is located at Jl. Tourism in the Gayungan sub-district, to be precise, next to the STIE Mahardhika Surabaya campus.Open from 06.00-16.00WIB. Green Resto has nine employees.At first, this stall had very limited facilities, starting from a place to eat for consumers and the condition of the air ventilation was lacking so that when consumers had lunch they felt uncomfortable.Then, through the observations of researchers, the price offered by Green Resto is quite expensive and if it is classified as included in MSMEs with middle class prices, it is proven by consumers who are interested in visiting Green Resto, it is rarely seen using motorized vehicles.Then for the location, according to observations made by researchers the location is in a corner next to the campus far from the crowds and not a strategic place.And for Word of Mouth itself is something that is the main trigger in the sustainability of consumer

Research Methods
Type of Research Descri This type of research uses quantitative methods.Quantitative method is a type of research with characteristics related to causation between two or more variables.[6] Quantitative research is research that uses numbers in presenting data and analysis using statistical tests.
The approach used in this study is a survey approach.Survey is a research approach that attempts to describe quantitatively the tendencies, opinions or attitudes of a particular population by examining a sample of that population.This survey research uses questionnaires and planned interviews in collecting data with the aim of generalizing the population based on a predetermined sample.

Population and Sample
Population is a set of individuals or objects whose number has a limit or not.Business Research Methods, population is a generalization area consisting of objects or subjects that have certain qualities and characteristics determined by researchers to be studied and then concluded.So the population is the whole of the characteristics or properties of the object/subject to be studied.The population in this study are consumers who come to make purchases at Green Resto.
The sample is part of the number and characteristics possessed by the population.So the sample taken from the population must be representative [1].The sampling technique that researchers will use is the nonprobability sampling technique by means of accidental sampling.Accidental sampling is a sampling technique based on coincidence, that is, anyone who meets the researcher by chance can be used as a sample, if it is deemed that the subject met by chance is suitable as a reference source of data.If the population is not known with certainty.

Data Collection Techniques
In this study, data collection will be carried out by researchers as follows: 1. Questionnaire Method The questionnaire method is usually called the questionnaire method.The questionnaire method is a point that contains a list of questions that have been arranged systematically, and then distributed to respondents to be filled out.[14] The distribution of the current questionnaire can be done directly to respondents or can use social media with the Google Form tool in the form of a link as an intermediary, this is not only easy but also saves time.This questionnaire was prepared using a Likert scale.Where each statement uses multiple choice, in order to get data that is subjective and later each answer is given a score.

2.Observat on Method
Observation or observation is a daily human activity by using the five senses of the eye as the main tool.It can be said that observation is a person's ability to use his observations through the work of the five senses and is assisted by the other five senses.In this study, researchers will make observations or observations by observing directly at the Green Resto.

Interview Method
Interviews are one form of conveying information either directly or indirectly.Collecting data by interview is a form of effort to collect information by asking a number of questions either verbally to be answered orally.This refers to the stall owner as an informant.

Data Source and Collection
Primary data is a source of data that is grouped by the researcher from the first source or obtained from the location of the object that the researcher will examine.
Primary data collection in this study through questionnaires and direct interviews with customers at Green Resto [7].Secondary data is a source of data that already exists in the object of research and can be directly used by researchers, this can be obtained by reading, studying and understanding through other media sourced from literature, books and company documents.

Data Analysis
The data analysis method used in this research is multiple linear regression analysis using SPSS version 25. [2] Multiple linear regression analysis is regression analysis that is able to explain the relationship between the dependent variable and more than one independent variable.To be able to perform multiple linear regression analysis, it is necessary to test the research instrument and test the classical assumptions.

Hypothesis Test 1. T Test
For partial or individual significance it is used to test whether an independent variable has an influence or not on the dependent variable.True or not the influence of an independent variable on the dependent variable also depends on the relationship between the variable and the social and economic conditions of the community.
To perform the t test there are several steps needed: a) Determine the hypothesis on the partial significance test as follows: Ho : B1 = 0 Ho :B1 ≠0 b) Determine the critical area, which is determined by the value of the t table c) Determining the t-count value for the b1 coefficient can be formulated as follows: t-count = b-B / Sb d) Determine the decision area, the decision area to accept H0 or reject H0 e) Determine the decision, whether the independent variable has an effect or not on the dependent variable.

F Test (simultaneous)
The F statistical test basically shows whether all the independent variables referred to in the model have a simultaneous effect on the dependent variable.The null hypothesis (H0) to be tested is whether all parameters in the model are equal to zero, or H0:b1 =b2 = 0 That is, are all independent variables not a significant exposure to the dependent variable.Alternative hypothesis (Ha), not all parameters are simultaneously equal to zero, or H0: b1 ≠ b2 ≠ 0 That is, all independent variables are simultaneously a significant exposure to the dependent variable.

Coefficient of Determination (R2)
The coefficient of determination (R2) is used to determine how much the independent variable (X) is related to the dependent variable (Y).According (L.Liana) coefficient of determination (R2) is used to determine the percentage change in the dependent variable (Y) caused by the independent variable (X) .If R2 is greater, then the percentage change in the dependent variable (Y) caused by the independent variable (X) is higher.If R2 is smaller, then the percentage change in the dependent variable (Y) caused by the independent variable (X) is lower [3].

Results and Discussions
This study collected primary data by distributing questionnaires to 97 respondents.The following is a summary of the respondents' answers to the questions in the questionnaire obtained from the number of price variable indicators (X1) as follows:  and R. Rahmawati), the reliability test is a tool used to measure a questionnaire which is part of the indicators of the variable.The method used in testing reliability is using the Cronbach Alpha statistical test.If the Cronbach Alpha score is greater than ≥ 0.60, it is certain that the questionnaire is reliable or consistent and vice versa if the Cronbach Alpha value is less than < 0.60, the questionnaire is considered unreliable or inconsistent.
Table 4.9 Reliability Test X1, X2, X3 and Y The value of the Cronbach Alpha in each variable (Price, Location, Word of Mouth, and Purchase Decision) is more than 0.60, which means that the answers given by the respondents are trusted or reliable.As for the results of testing the reliability test of each variable, it can be seen in the Table 4.9.

Price Relationship to Purchase Decision
Based on the results of the partial test (t test) the effect of price (X1) on purchasing decisions (Y) has a t value of 3.809 with a significance level of 0.000.Because t count is 3.809 > t table 1.985 and the significance level is <0.05, this indicates that the price variable has a partial and significant effect on purchasing decisions.[5] This is because price has an important role in determining a consumer's purchasing decision.Price is the first determining tool used by customers before making a purchase decision, because price is the value or benchmark of a product or service.Price is the main key that can provoke customer purchasing decisions to buy products or services offered from companies (A. S. Maulana).The distribution of respondents' answers also shows that there is a price indicator that has a dominant frequency of 57 answers, which means that most respondents strongly agree with the statement that prices must be adjusted to the quality of existing products.The results of this study are in line with research conducted.Which explains that, the price variable has a positive and significant effect on purchasing decisions.Even though the price is expensive, this restaurant has good taste quality, this makes customers not think long about making a purchasing decision.Thus, the first hypothesis proposed by the researcher which states that price has a partial and significant effect on purchasing decisions at Green Resto has been verified so that the first hypothesis can be accepted.

Location Relationship to Purchase Decision
Based on the results of the partial test (t test) the effect of location (X2) on purchasing decisions (Y) has a t value of 2.098 with a significance level of 0.000.[4] Because t count is 2.089 > t table 1.985 and the significance level is <0.05, this indicates that the location variable has a partial and significant effect on purchasing decisions.This indicates that location is an element that is no less important for consumers in making a purchase decision (A.ayu Setyoningrum).[12] Location is also aimed at various marketing operations that seek to speed up and expedite the transportation or distribution of products and services from producers to consumers (K.Chelviana).Businesses should realize that consumers often rely on their purchases where they are physically located.This indicates that the key factor in determining how and where a business develops is its location.The location that has been chosen must be able to develop from an economic point of view so that the producer can maintain the viability of his business.The decision in choosing a location is very important for the future.A strategic location and having large land that can be passed by all vehicles will help businesses succeed because they are easily accessible and encourage consumers to buy goods that will be sold by traders.The distribution of respondents' answers also shows that there is a location indicator that has a dominant frequency of as many as 80 answers, which means that most respondents strongly agree that easy and passable location access even with 4-wheeled vehicles is an important thing that can increase a consumer's decision to make a purchase.Thus, the second hypothesis proposed by the researcher which states that location has a partial and significant effect on purchasing decisions at Green Resto has been verified so that the second hypothesis can be accepted.[10] Word of Mouth is a consumer behavior in providing information to other consumers both in terms of taste and the products it offers (P.Sopiyan).Word of Mouth is included in a marketing strategy that is still traditional in conveying personal information.Consumptive consumers will automatically talk about a product.With this Word of Mouth can also have a positive or negative impact on the recipient of the information.So this will be an opportunity for producers to give a good image to consumers.The distribution of respondents' answers also shows that there is a Word of Mouth indicator which has a dominant frequency of 57 answers, which means that most respondents strongly agree that recommendations regarding a company's products to other people are very important and can improve a person's decision to make a purchase.Thus, the third hypothesis that has been proposed by researchers which states that Word of Mouth has a partial and significant effect on purchasing decisions at Green Resto has been tested for validity so that the third hypothesis can be accepted.making a purchase, every consumer must always consider or think about price.The price offered to consumers is certainly something that must be considered carefully and precisely.[6] The right price can increase customer buying interest, conversely if the price is too high enough it will reduce the level of purchasing decisions.

Conclusion
Based on the results of analysis and hypothesis testing on existing variables, it can be concluded as follows: Prices have a partial and significant effect on purchasing decisions at Green Resto.Location has a partial and significant effect on purchasing decisions at Green Resto.Word of Mouth has a partial and significant effect on purchasing decisions at Green Resto.Price, location and word of mouth have a simultaneous and significant effect on purchasing decisions at Green Resto.

[ 15 ]
Multiple linear regression analysis is an analytical technique that is commonly used in analyzing the relationship and influence of one dependent variable (Y) and two or more independent variables (X) (E.H. Briliant and M. H. S. Kurniawan).The multiple linear regression equation model can be calculated using the following formula: Y = a + b1X1 + b2X2 + b3X3 Information : Y = Purchase Decision a = Constant Price b1 = Regression coefficient for price b2 = Regression coefficient for location b3 = Regression coefficient for Word of Mouth X1 = Price Variable X2 = Location Variable X3 = Word of Mouth Variable Anggita Putri Ananda 1 , Anita Kartika Sari 2 , Mochamad Fatchurrohman 3 Journal of Artificial Intelligence and Digital Business (RIGGS) Volume 2 Nomor 1, Juli 2023 DOI: https://doi.org/10.31004/riggs.v2i1.115Lisensi: Creative Commons Attribution 4.0 International (CC BY 4.0) 27

4 .
Relationship of Price, Location, and Word of Mouth to Purchasing Decisions Based on the results of the simultaneous test (Test f) the effect of Price (X1), Location (X2) and Word of Mouth (X3) on Purchase Decision (Y) obtained f count (12.589) > f table (2.70) with a significance of 0.001, then this shows that the variables Price, Location, and Word of Mouth have a positive and significant effect on Purchase Decision.This is because the variables Price, Location, and Word of Mouth are equally important in influencing the level of a consumer's purchasing decision.Every business cannot be separated from the factors that influence a purchase decision, where before Journal of Artificial Intelligence and Digital Business (RIGGS) Volume 2 Nomor 1, Juli 2023 DOI: https://doi.org/10.31004/riggs.v2i1.115Lisensi: Creative Commons Attribution 4.0 International (CC BY 4.0) 29

Table 3 .
2 Likert Scale This questionnaire method contains questions that are used to collect data about the effect of Price, Location and Word of Mouth on purchasing decisions at Green Resto.Journal of Artificial Intelligence and Digital Business (RIGGS) Volume 2 Nomor 1, Juli 2023 DOI: https://doi.org/10.31004/riggs.v2i1.115Lisensi: Creative Commons Attribution 4.0 International (CC BY 4.0) 26

Table 4 .
[11]questionnaire can be said to be valid if the calculation of r count> r table with a significance value of 0.05, then the items in the questionnaire in question can be declared valid and suitable for use in a study.In this study, r tables are calculated using the formula (DF = n -2) where n is the number of samples used.So the DF value in this study is DF = 97 -2 = 95, from the existing DF value and the determined significance is 0.05, the r table value obtained is 0.1996.[11]Comparison of the calculated r value for each indicator and r table is presented in the following table: validity test According, Validity Test is a measure in indicating the validity level of an instrument.An instrument can be said to be valid if it can show data from the variables studied accurately and precisely.The validity test aims to determine the extent to which the questionnaire items are valid or invalid.

Table 4 .
8 Comparison of r Count and r Table Reliability test According to (D. Pradana, S. Hudayah, 3. Relationship of Word of Mouth to Purchasing Decisions Based on the results of the partial test (t test) the effect of Word of Mouth (X3) on Purchase Decisions (Y) has a t value of 4.819 with a significance level of 0.000.Because t count is 4.819 > t table 1.985 and the significance level is <0.05, this indicates that the Word of Mouth variable has a partial and significant effect on purchasing decisions.This proves that Word of Mouth is no less important in influencing consumer purchasing decisions.