ANALYSIS OF THE EFFECT OF PRICE, LOCATION, STORE ATMOSPHERE, AND WORD OF MOUTH ON PURCHASING DECISIONS: A STUDY AT WARUNG GUNUNG (WAGU) KEDIRI

Abstract

This study aims to analyze the influence of price, location, store atmosphere, and word of mouth on consumer purchasing decisions at Warung Gunung. Data collection was conducted through a questionnaire that had been tested for reliability, with Cronbach's Alpha values for all variables above 0.70, indicating good internal consistency. The regression results showed that the variables of price (β = 0.368; t = 4.217; sig = 0.000), location (β = 0.417; t = 2.387; sig = 0.020), and store atmosphere (β = 0.394; t = 2.919; sig = 0.005) had a significant effect on purchasing decisions. Conversely, word of mouth was not significant (β = -0.360; t = -1.116; sig = 0.269). The R Square value of 0.79 and adjusted R² of 0.775 indicate that the model is able to explain 77.5% of the variation in purchasing decisions. SWOT analysis was used to formulate development strategies, including SO strategies such as strengthening digital promotions based on store atmosphere and competitive prices, and WO strategies such as rebranding word of mouth through social media. These results recommend optimizing store atmosphere and utilizing digital platforms to support purchasing decisions and strengthen Warung Gunung's competitive advantage amidst the competition in the local culinary business.