THE EFFECT OF PRICE COMPETITION INTENSITY AND DIGITAL SALES CHANNEL PROLIFERATION ON PURCHASE INTENTION WITH CUSTOMER TRUST AS A MEDIATING VARIABLE: A CASE STUDY OF HILMI OPTIK TASIKMALAYA

Sri Mulyati; Alimuddin Rizal Rivai

Authors

Sri Mulyati Faculty of Economics and Business, Universitas Stikubank, Semarang, Indonesia Author
Alimuddin Rizal Rivai Faculty of Economics and Business, Universitas Stikubank, Semarang, Indonesia Author

Keywords:

Price Competition Intensity, Digital Sales Channel Proliferation, Customer Trust, Purchase Intention

Abstract

This study aims to analyze the effect of price competition intensity and digital sales channel proliferation on purchase intention, with customer trust as a mediating variable. The study employs a quantitative approach using explanatory research design. The population comprises customers of Hilmi Optik Tasikmalaya who have interacted and transacted through various digital sales channels, with a purposive sample of 110 respondents. Data were collected via a Likert-scale questionnaire and analyzed using Partial Least Squares–Structural Equation Modeling (PLS-SEM) with SmartPLS software. The results reveal that price competition intensity and digital sales channel proliferation each have a positive and significant effect on customer trust. However, price competition intensity does not have a significant direct effect on purchase intention, while digital sales channel proliferation has a positive and significant direct effect on purchase intention. Customer trust exerts a positive and significant effect on purchase intention and significantly mediates the relationships of both price competition intensity and digital sales channel proliferation with purchase intention. These findings confirm that competitive pricing and well-managed digital channels are important drivers of customer trust, which in turn is the key mechanism converting marketing stimuli into actual purchase intention.

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