THE IMPACT OF QUALITY PERCEPTION AND VALUE PERCEPTION TOWARD PURCHASE INTENSITY (SURVEY COFFEE SHOP VISITORS IN PADANG CITY)

The attraction of coffee is its unique taste and historical value, tradition, and life style. The phenomenon of coffee shops can not be separated from the habits or culture coffee drinking in community. This has encouraged business people, especially in Padang City to make coffee cafes a promising commodity for business opportunities. The purpose of this research is to find out; the impact of perceived quality on perceived value, and the effect of perceived value on repurchase intention. This research uses quantitative methods and uses SEM-PLS analysis to test research model. The observation unit in this study is customer Coffee Shops in Padang City as many as 120 respondents. In measuring variables using the Likert scale. The results found that the variable perceived quality significantly impact on perceived value, whereas perceived value significantly e on the repurchase intention. Keyword : quality perceived, value perceived, and repurchase intentsity. AUTHORS / PRIMANOMIS : JURNAL EKONOMI DAN BISNIS VOL. 18. NO. 2 (2020) 2 INTRODUCTION The popularity of coffee shops is inseparable from the 'coffee' habits that are built up in community. Society has made it as a necessity, there are even more in depth. The existence of a coffee shop can accommodate the needs and desires of consumers, such as the type of coffee offered, even the atmosphere of coffee shop. As physical changes develop, coffee shops come in a modern atmosphere and provide more facilities, both in terms of menu choices, as well as facilities and infrastructure to support public facilities to attract visitors. Then coffee shop also offers coffee activities that are different from the previous coffee shop. Another difference in terms coffee price is much more expensive than ordinary coffee shops. This has encouraged business actors, especially in Padang city to make coffee shops as a promising commodity to become a business opportunity. This phenomenon has led to emergence such various types of coffee shops in Padang city. Based on the description above, can be seen in table 1 that presents data regarding the cafe development from 2014 to 2016 as follows: Table 1: Development of Coffee Shops in Padang City in 2014 to 2016 No Year Coffee shop total 1 2014 20 2 2015 40 3 2016 160 Data source: Padang City Tourism Department From table 1 it can be seen that the Coffee shop development in Padang City, the period in 2014 to 2016 experienced a significant development. This proves that coffee shops development in Padang city has increased. Seeing this phenomenon requires businesses to provide services and products that best suit customer needs in order to mastering the competition. In addition to good taste, the menus availability and various menus offered are interest themselves for consumers. To maintain raw materials, there is always a need for upstream to downstream relations, this makes visitors feel the value of the overall quality of the products or services offered by coffee shop in Padang city. This is in line with the concept of quality perception conveyed by Wu and Chen (2014), that quality perception is the quality perceived by products consumers or services by relying on the whole set of basic and external product dimensions or service. It should be underlined, that the key to quality perception is consumers' assessment toward advantages and attributes inherent in the product. The products offered by coffee shops in Padang City cannot be separated from the value felt by costumers. Values in this context are understood as consumers' conclusions about products that are often not related to prices (Zehir et al, 2014). It is simply understood that the use product value is interpreted as a perception about what is received by consumers from what they have given. This then becomes consumers consideration in making decisions to choose certain products. A significant factor in PRIMANOMICS : JURNAL EKONOMI DAN BISNIS VOL. 18. NO. 2 (2020) Versi Online Tersedia di : https://jurnal.ubd. ac.id/index.php/ds | 1412-632X (Cetak) | 2614-6789 (Online) | 1 playing a role in decision making process is called value perception (Gursoy et al., 2014). In a studies series conducted by Pike and Bianchi, 2013; Milfelner, 2009; Haque & Khan, 2013; Milfelner, 2009, can be drawn a common thread that perceived value is directly related to customer satisfaction and loyalty. Thus, as an important element in marketing and as a step to remain competitive, businesses are obliged to increase the perceived products value that offered to consumers by increasing benefits received by consumers beyond the offer. The ultimate goal is to create and maintain long-term relationships to benefit from customer loyalty. Loyalty will be marked by a repeat purchase made by consumers, and also recommend to others. LITERATURE REVIEW A. Quality Perception In simple terms, the perception of quality can be defined as a consumer's assessment of the overall product superiority or superiority. In a deeper definition of quality perception is "the customers perception of the overall quality or superiority of a product or service with respect to its intended purpose, relative to alternatives" Aaker (2009). So, it can be understood that quality perception is a matter of consumer quality perception and excellence of a product or service. The key is consumer perception. It is important to note that product quality is an important resource for companies to be able to compete with other products. Quality perception can also be used as a brand extension tool. A brand with a strong quality perception will be able to expand further and will have a greater success chance than a weak brand (Susanto and Wijanarko, 2004). In addition, the perception of quality also has an important role in building a brand. The quality that is owned by a brand, can be used as a reason when consumers choose the desired product, it will indirectly affect consumers in deciding which brands to buy. B. Value Perception Perception is the process used by an individual to select, organize, and interpret information inputs to create a meaningful picture of the world (Kotler and Keller, 2012). The term "value" has its basis in the economic literature. From an economic point of view, value is the benefit minus the costs that both buyers and sellers get from a product. An exchange will not occur unless there are benefits for both parties, where both parties must feel that consumers get more than what consumers give in transaction activities (Wu and Chen (2014)). Value perception views quality in value terms and price. By considering performance and price, quality is defined as affordable excellence. Quality in this case is relative so that the most valuable products are the most appropriate goods and services purchased. According to Shiffman and Kanuk (2008) perceived value is measured based on monetary and non-monetary costs combined with quality perception. Value perception is a significant factor that plays a role in the decision making process (Gursoy et al., AUTHORS / PRIMANOMIS : JURNAL EKONOMI DAN BISNIS VOL. 18. NO. 2 (2020) 4 2014), and perceived value is one of important elements in marketing to gain competitive advantage (Haque & Khan, 2013). C. Repurchase Intensity If the individual is interested in something this is because the object is useful to meet their needs. A person's tendency to give attention when accompanied by feelings of like or often referred to as interests (Rustan, 2008). Ratnawati (2002) suggests that interest is a tendency to behave oriented towards certain objects, activities and experiences, further explaining that the intensity of a person's tendencies differs from the others, perhaps greater intensity or smaller depending on each person. The intensity of repurchase is defined as individual consideration related to the repurchase a particular product or service, (Hellier et al., 2003) and the main reason is in the experience after shopping. Companies instead of attracting new customers can retain previous customers at less cost (Zeithaml, 1996). D. Conceptual Framework The conceptual framework developed in this study is expected to be able to describe the research that will be conducted by researchers as a whole, namely to determine the impact of perceived quality and perceived value toward repurchases intensity on Coffee shop in Padang city. In this section, based on the theory that has been studied, a conceptual thinking model will be proposed which has become an empirical research model and serves as a guideline in conducting research, which will further demonstrate the effect of perceived quality and perceived value on the intensity of repurchases described in the following frame of mind: Figure 1: Conceptual Framework H1 H2 Data source: Related research Then found the hypothesis: H1: Allegedly perceived quality has a significant impact on perceived value at Coffe shop in Padang city H2: Allegedly the perceived value has a significant impact on the repurchases intensity at Coffe shop in Padang city RESEARCH METHODS A. Research Type This research uses explanatory research that is research used to find out whether or not the influence of a variable in a particular situation (Sekaran, 2006). This research uses quantitative methods. The data collection apply by distributing questionnaires. This study uses a cross-sectional time horizon. The observation unit in this study is the coffee shop customers in Padang City. B. Population, Samples and Sampling Techniques This study uses a type of sampling in nonprobability sampling form with purposive sampling technique. Purposive sampling technique is a technique for Quality