The Effect of Price and Product Quality on Consumer Purchase Decisions in CV. Arabasta Commodity

Research Aims: This research aims to quantitatively analyze the influence of price and product quality on consumer purchasing decisions, both partially and simultaneously. Design/methodology/approach: The research method used is quantitative descriptive associative with a Likert scale questionnaire instrument for a representative sample of 154 respondents determined using the Slovin formula. Research Findings: The results of statistical testing show that the price variable has a significant partial effect (p-value = 0.000) (α ≤ 0.05) ) and product quality have a significant partial effect (p-value = 0.096 (α ≤ 0.05) ) on purchasing decisions. Simultaneously, the interaction of price and product quality is proven to have a significant effect on consumer purchasing decisions (p-value = 0.000 (α ≤ 0.05) ). Theoretical Contribution/Originality: This research confirms that the combination of financial value and quality fulfillment strategies is the main determinant in directing customer purchasing selection actions. Research limitations and implications: This research is limited by its focus on testing only two internal variables at a single distributor. The practical implications of this study require management to balance price affordability with the purchasing power of local communities.