The Role of Word of Mouth (WOM) in Mediating Brand Images Influence on Purchase Decisions of 3i-Networks Product at PT AJ Central Asia Raya in Denpasar Branch Office

  • Ni Putu Pista Yanthi Faculty of Economics and Business, Universitas Mahasaraswati Denpasar
  • Ni Wayan Mitariani Faculty of Economics and Business, Universitas Mahasaraswati Denpasar
  • Ni Putu Cempaka Dharmadewi Atmaja Faculty of Economics and Business, Universitas Mahasaraswati Denpasar

Abstract

Insurance products that function to provide a sense of security
to the community are always growing, causing insurance companies to try to increase purchasing decisions for their products. One of the methods used is by increasing the brand image in the eyes of the public. The purpose of this study was to determine the effect of brand image on purchase decisions through word of mouth as the mediation variable. This research was conducted at PT AJ Central Asia Raya Denpasar Branch, located in Denpasar, Bali. The primary data in this study was collected through a questionnaire that distributed to customers. The sampling technique used is the Slovin formula. The number of respondents taken in this study were 100 respondents. The data analysis technique is Path analysis. The results of the study present that brand image and word of mouth directly had a positive and significant effect on purchase decisions. Brand image for purchase decisions is mediated by word of mouth. The implication in this case is that when a consumer recommends a product to his / her closest people, talks and even suggests that person to use the product, it can be said that the consumer has a deep image and
understanding of the product. A consumer who deliberately recommends a product indirectly believes that the product he is suggesting has reliable quality. Therefore, the purchasing decisions for this product will increase.

Published
2020-11-30