The Role of Corporate Image in Mediating the Effect of Service Quality on Buying Decision for a Retail Outlet in Bali

Abstract

Purchase decision is a decision to choose one from two or more alternative options. It can be assumed that all behaviors are deliberately based on the desire that are produced when consumers consciously and rationally choose one of the alternative actions. This study was conducted in Hardy’s Retailindo, Sanur Branch. The sample included 100 respondents. The techniques of data collection were through observation, interviews, and questionnaire. The techniques of data analysis were through a validity test, reliability test, path analysis, and Sobel test. The results of this study showed that service quality has a significant effect on the purchase decision in Hardy’s Retailindo, Sanur Branch. The level of significance for service quality on the purchase decision is 0.000 < 0.05. Moreover, the service quality also had a significant impact on the corporate image for the retail outlet that was examined in this paper. Another significant effect was established between service quality and purchase decision. All hypotheses displayed levels of significance lower than 0.05. This paper also aimed to explore the mediation role of corporate image in the ‘services quality’ – ‘purchase decision’ relationship.

Keywords

• service quality
• corporate image
• purchase decision
• buying decision