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September 12, 2025Financial Engineering0 citationsOpen Access

The Effect of Product Quality and Company Image on Purchasing Decisions with Purchase Intention as an Intervening Variable

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RPRosa Mawar PingkaHPHeri PrabowoSSSutrisno Sutrisno

Key Points

  • Company image significantly influences purchasing decisions both directly and indirectly through consumer buying interest.
  • Product quality shows a strong positive correlation with consumer buying interest, but does not directly affect purchasing decisions.
  • Using the PLS-SEM method, findings are based on a sample of 100 respondents selected through purposive sampling.
  • Building a positive company image is crucial for driving purchasing decisions more than merely enhancing product quality.

Abstract

The background of this study is based on sales fluctuations experienced by UD Harum Jaya furniture store, despite having products that are considered quality and a company image that is considered good in the eyes of consumers. This study aims to analyze the effect of product quality and company image on purchasing decisions, with purchase intention as an intervening variable. This study uses a quantitative approach with data collection techniques through distributing questionnaires. The research sample consisted of 100 respondents selected using purposive sampling method, namely sample selection based on certain characteristics or criteria. The data were analyzed using the PLS-SEM (Partial Least Squere Structural Equation Model) method with the help of SmartPLS 4 software. This study shows that product quality and company image have a significant positive effect on consumer buying interest, but only company image and buying interest have a significant effect on purchasing decisions for UD Harum Jaya furniture consumers. Product quality has no effect directly or through buying interest on purchasing decisions, while company image is proven to have an effect both directly and indirectly through buying interest. Therefore, building a positive company image and increasing consumer buying interest is an important strategy in driving purchasing decisions, rather than focusing only on improving product quality.

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Cite This Study

Pingka et al. (2025) studied this question.

synapsesocial.com/papers/68d44b2231b076d99fa540a5https://doi.org/10.37394/232032.2025.3.33
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