Scientium Management Review

ISSN : 2962-8328
E-ISSN : 2962-6323
Pp : 171- 178
Volume 1 No 2 2022

THE EFFECT OF PRODUCT PACKAGING AND PRICE ON ONLINE PURCHASE

DECISIONS OF SME PRODUCTS WITH PURCHASE INTEREST AS INTERVENING
VARIABLES (CASE STUDY ON ONLINE BUYERS OF FOOD AND BEVERAGE SME
PRODUCTS IN MAKASSAR CITY)

Atirah Ridwan1, Nuraeni Kadir2, Muhammad Ismail3

1 Master of Management, Faculty of Economics and Business, Hasanuddin University;
atirahridwan@gmail.com
2 Faculty of Economics and Business, Hasanuddin University; nuraeinikadir@gmail.com
3 Faculty of Economics and Business, Hasanuddin University; ismail.pabo.hamma@gmail.com

ABSTRAK
This study aims to determine the effect of product packaging and price on online
purchasing decisions for SME products through purchase intention as an intervening
variable. This research is quantitative, and the data used is primary data, namely, data
obtained from distributing questionnaires to research subjects. The population in this study
are consumers who have purchased SME products online in Makassar. The sampling
technique used was purposive sampling with a total sample of 100 respondents. The
analytical method used in this study is the partial least squares PLS method with the help of
the SmartPLS 3.0 program. The study's findings indicate that (1) packaging has a positive
and significant effect on interest in purchasing SME Makassar products; (2) prices have a
positive and significant effect on interest in purchasing Makassar City SME products; (3)
packaging has a positive and significant effect on online purchasing decisions for Makassar
City SME products; and (4) price does not have a positive and significant effect on online
purchasing decisions for Makassar City SME products. (5) Interest in buying has a positive
and significant effect on online purchasing decisions for Makassar City SME products; (6)
packaging has a positive and significant effect on online purchasing decisions through
interest in buying Makassar City SME products; and (7) price has a positive and significant
effect on online purchasing decisions through interest in buying Makassar City SME
products.

Keywords: Packaging, Price, Interest in buying, dan online purchasing decisions

A. INTRODUCTION
Indonesia's digital economy potential continues to increase. In 2020, the
value of Indonesia's digital economy was recorded at 44 million USD or 631 trillion
rupiah. In 2025, it is estimated that it will reach 124 million USD or 1,744 trillion
rupiah. Currently, the number of internet users in Indonesia has reached 196.7
million. As many as 17.8% of these internet users come from Java, the province with
the highest internet users in Indonesia. The high number of internet users has a
positive correlation with the increase in the digital economy. The potential for
Indonesia's digital economy is derived from the high number of internet users in the

Scientium Management Review Vol. 1 no. 2 . 2022 171

country. With such high internet penetration, business processes are experiencing
digital transformation during this pandemic (Ministry of Finance Data, 2020).
Changes in digital transformation result in changes in buying behavior. This change
occurred as a result of the emergence of various marketplaces in Indonesia. Its
existence necessitates the use of online sales by businesses such as UKM in order to
reach a broader audience.
Food small and medium enterprises (SME) are one type of business that can
represent and have prospects in the development of the city of Makassar. Examples
of packaged food SME products in Makassar include shredded catfish, shredded
milkfish, shredded crab, Daeng chocolate, Ananda chocolate, banana brownies, disco
nuts, cashews, fried corn, and so on. However, the processed products of SME that
are currently widely marketed seem to be just to meet consumer needs, even
though consumers have many other considerations that cause them to be interested
in arriving at a decision to buy a product.

B. RESEARCH METHODS
1. Research Design
In this study, researchers used a quantitative approach. This approach is a
type of research that has its specifications, namely, being systematic, planned, and
clearly structured starting from the beginning of the research to the research
design, both regarding research objectives, research subjects, research objects, data
samples, data sources, and methodology.
2. Population and Sample
In this study, the population consisted of Makassar residents who had made
online purchases of food and beverage SME products. This study used the
probability sampling technique with the simple random sampling method, where
the sample was selected from the population based on the willingness of the sample
members. Because the population in this study was large and infinite (infinite), it
was impossible to calculate the sample size using the Slovin formula. Based on the
calculation above, the number of samples in this study was 99.99 respondents,
which were then rounded up to 100 respondents.
3. Method of Collecting Data
Data collection in this study was carried out by distributing open
questionnaires to respondents who had purchased SME products online.
Respondents were asked to answer questions by selecting the answers that had
been provided using a Likert scale that contained five levels of answer choices
regarding the respondent's agreement with the statements put forward.
Respondents filled out statements via the Google form link, which was distributed
via social media, and questionnaires were given directly at the store.
4. Data Analysis Technique
This study uses data analysis using SmartPLS software. PLS (partial least
squares) is a component or variant-based Structural Equation Model (SEM). This
analysis consists of two sub-models, namely the measurement model (outer model)
and the structural model (inner model).

172 Scientium Management Review Vol. 1 no. 2 . 2022

C. ANALYSIS AND DISCUSSION
1. Measurement Models (Outer Model)
There are three criteria for assessing the outer model, namely convergent
validity, discriminant validity, and composite reliability.
1. Convergent Validity
The results of the estimation of the PLS model show that there are several
indicators that have a loading factor value below 0.7, namely X2.4, Z1.3, Z1.5, Z1.6,
Y1.3, and Y1.4. So it can be interpreted that these indicators are invalid and must be
removed from the PLS model in order to meet the requirements of convergent
validity. A second stage test was performed by reviewing the loading factor value of
each construct. Following all valid indicators, it is known that all indicators of each
variable already have a loading factor greater than or equal to 0.70, implying that all
indicators are valid indicators for measuring the construct.
2. Discriminant Validity
Discriminant validity is a form of evaluation to ensure that the variables are
theoretically different and proven statistically. Tests were carried out using the
results of cross-loading and the Average Variant Extracted (AVE) can also be used to
test discriminant validity, provided that each variable has a value of >0.5. So it is
known that there are no validity problems with the model tested.
3. Composite Reliability
Tabel 1. Realibility Test Results
Variabel Cronbach’sAl Composite
pha Reliability
Price 0,844 0,927
Packaging 0,754 0,842
Interest of Buying 0,724 0,839
Purchasing decisions 0,545 0,806
Sumber : Processed Data, 2022

All variables measured in this study have Cronbach's alpha values and
composite reliability values > 0.7, so all variables are reliable.

2. Structural Models (Inner Model)

Tabel 2. R-Square Test Results
Packaging Price Interest of Purchasing
Buying decisions
R-square - - 0,431 0,431
Adjusted R-Squares - - 0,413 0,419
Cronbach’s Alpha 0,844 0,754 0,724 0,545
Q-Square - - 0,240 0,257
Sumber : Processed Data, 2022

Based on the R-Square calculation, a value of 0.431, or 43.1%, is obtained,

which means that it can be interpreted that the research model can explain 43.1%
of the contribution to the influence of packaging, price, purchase intention, and
consumer purchasing decisions.

Scientium Management Review Vol. 1 no. 2 . 2022 173

 Tabel 3. Direct Effect of Research Variables
Variable T-statistic P-Values Keterangan
X1 → Z 5,284 0,000 Significant
X1 → Y 2,580 0,010 Significant
X2 → Z 3,236 0,001 Significant
X2 → Y 0,331 0,741 Insignificant
Z →Y 5,332 0,000 Significant
Sumber : Processed Data, 2022

1. The test results show that packaging has a significant positive effect on
purchase intention, as seen from the T-statistic value, which is above 1.96,
which is equal to 5.284, and a significance value of 0.000 < 0.05.
2. The test results show that price has a significant positive effect on purchase
intention, as seen from the T-statistic value, which is above 1.96, which is
equal to 3.236, and a significance value of 0.001 < 0.05.
3. The test results show that packaging has a significant positive effect on
purchasing decisions, as seen from the T-statistic value, which is above 1.96,
which is equal to 2.580, and a significance value of 0.010 < 0.05.
4. The test results show that price has no effect and is negative (insignificant)
on purchasing decisions, as seen from the T-statistic value, which is below
1.96, which is equal to 0.331, and a significance value of 0.741 > 0.05.
5. The test results show that purchase intention has a significant positive effect
on purchasing decisions, as seen from the T-statistic value, which is above
1.96, which is equal to 5.332, and a significance value of 0.000 < 0.05.

Tabel 3. Specific Indirect Effects of Results

Correlation Path Coefficient T-statistic P-Values Keterangan
X1 → Z → Y 0,191 3,739 0,000 Significant
X2 → Z→ Y 0,150 2,804 0,005 Significant
Sumber : Processed Data, 2022
6. The test results show that packaging has a significant positive effect on
purchasing decisions through purchase intention, as seen from the T-statistic
value, which is above 1.96, which is equal to 3.739, and a significance value of
0.000<0.05.
7. The test results show that price has a significant positive effect on
purchasing decisions through purchase intention in terms of value. The T-
statistic is above 1.96, which is 2.804, with a significance value of
0.005<0.05.
1. The Effect of Packaging on Interest in Buying
From the results of the data analysis, it is known that there is an effect of
packaging on consumer buying interest; the result is that the P-values that form the
influence of packaging on consumer buying interest are 0.000 plus the T-statistics
are positive, so it is stated that packaging has a positive effect on consumer buying
interest. This is in accordance with the opinion of Leonor Crossley (Abdullah et al.,
2013), who stated that the way each product is packaged plays a big role in the
decision to buy it or not.

174 Scientium Management Review Vol. 1 no. 2 . 2022

 This indicates that the more attractive the packaging of an SME product that
is viewed online, the more it will generate interest in buying SME products offered
by business actors. These results reinforce previous research by Willy et al. (2019),
which stated the same thing: product packaging, which can include names, brands,
colors, typography, and images, has a fairly high perception in the minds of
consumers when they are interested in a product.
2. The Effect of Price on Interest in Buying
From the results of data analysis, it is known that price has a positive and
significant effect on consumer buying interest. This shows that the suitability of
prices for SME products offered online will attract consumers to shop online. Shah
et al. (2014) state that price is the most visible part of the product and is an
important element in the marketing mix. Consumers will tend to choose low prices
for products whose specifications are known. In this study, consumers pay attention
to the price element according to consumer affordability when choosing SME
products online that are displayed more competitively. Other research supported by
the findings of this study is research conducted by Baariq et al. (2021) and
Khoiratun et al. (2019), each of which states that there is a positive effect of price on
buying interest.
3. The Effect of Packaging on Purchasing Decisions
From the results of data analysis, it is known that there is an effect of
packaging on consumer purchasing decisions; the result is that the P-values that
make up the effect of packaging on consumer buying interest are 0.010 plus a
positive T-statistic value, so that packaging has a positive effect on purchasing
decisions. This implies that SME product packaging is not just a product container
but also something that influences consumer purchasing decisions, because only by
looking at the outside appearance of the packaging do consumers have a good
perception of the product. so that consumers will immediately determine their
purchases of SME products offered online.
The results of research from Silayoi and Speece (2007) state that packaging
can influence purchasing decisions because consumers will only consider the
structural packaging to ensure whether SME products are well protected or not.
This is none other than because of the various choices of packaging, both in terms of
shape, size, and material. Danger (1987) also stated that packaging with good
quality and light materials will tend to be the consumer's choice in purchasing.
4. The Effect of Price on Purchasing Decisions
From the results of data analysis, it is known that there is a significant
influence of price on purchasing decisions, referring to the original sample value,
which is positive (-0.037) with a P-value of 0.741 > 0.05, indicating that price (X2)
has a negative effect on purchasing decisions (Y1). In this study, the price is defined
as its affordability and compatibility with quality. Online SME products are shown
to be cheaper and more economical, and are considered by consumers to be
affordable, but the quality of each is not optimal. So price selection in purchasing
decisions is in accordance with the affordability of consumers when selecting SME
products online. This is because the consumer's perception of the size of a price can
be said to be expensive, cheap, or just not the same; this depends on individual
perceptions of the consumer's living environment and conditions (Schifman and
Kanuk, 2000).

Scientium Management Review Vol. 1 no. 2 . 2022 175

 These findings differ from the research conducted by Cindy (2015). Nur
Sakinah et al. (2021) and Baariq et al. (2021) state that price has a positive effect on
purchasing decisions. The findings of this study do not support the three studies
above. Even though they have different results from the research conducted,
previous studies have the same theory used, but different from the type of industry
studied.

5. The Effect of Interest of Buying on Purchasing Decisions

From the results of the data analysis, it is known that there is a significant
influence between buying interest and purchasing decisions. Referring to the
original sample value, which is positive (0.472) with a P-value of 0.000<0.05, it
means that consumer buying interest (Z1) has a significant positive effect on
purchasing decisions (Y1). Based on the test, it can be seen that if consumer buying
interest increases, purchasing decisions will also increase, and vice versa, if
consumer buying interest decreases, purchasing decisions will also decrease.
Consumer buying interest begins with the attitude of consumers who are interested
in the products offered by SME products, starting from the stage of paying attention
to the product, product interest, and the act of buying SME products. After
consumers become interested, a desire to have the product will arise. If you already
want them, consumers will choose to purchase SME products that they see online.
This confirms that consumer interest in buying has a significant effect on
purchasing decisions.
The results of this study support and strengthen the findings of previous
research by Rizan et al. (2021) that variable purchase intention has a significant
effect on purchasing decisions. This demonstrates that there is a significant
influence in which any changes in the variable of purchase interest can increase
consumer purchasing decisions.

6. The Influence of Packaging on Purchase Decisions through Consumer Purchase

Interest

From the results of the research that has been done with reference to the
original sample value, which is positive (0.191) with a P-value of 0.000<0.05, it can
be interpreted that packaging (X1) has a significant positive effect on purchasing
decisions (Y1) through consumer buying interest (Z1). SME products offered online
pay attention to consumer needs with the right packaging. In fact, consumers can
only see SME products from the images seen online. In the picture, you will see a
photo of the SME product packaging. However, due to the growing development of
digitalization, consumers experience changes in their attention to visible products.
Over time, packaging that originally looks attractive and fresh will look outdated or
give the impression of being worn out. This can result in consumers being
disinterested, thereby influencing their decision to purchase SME products online.
This confirms that packaging has a significant effect on purchasing decisions
through consumer interest.
These results corroborate research by Martanti et al. (2022), which stated
the same thing. This indicates that packaging with good design will increase
consumer purchasing decisions through purchase intention as an intervening
variable. Then there was also research conducted by Willy et al. (2019), where the

176 Scientium Management Review Vol. 1 no. 2 . 2022

study stated that packaging variables have a significant effect on purchasing
decisions through consumer interest.

7. The Influence of Price on Purchase Decisions through Consumer Purchase

Interest
From the results of the study referring to the original sample value, namely
positive (0.150) with a p-value of 0.005<0.05, it can be stated that price (X2) has a
significant positive effect on purchasing decisions (Y1) through consumer buying
interest (Z1). This implies that the displayed prices of SME products, both promo
prices and discount prices, can attract consumer interest because there is a
tendency for consumers to choose a product not because they really want the
product but because they have the opportunity to have SME products at a lower
price than usually. Consumers believe that product prices seen online appear more
affordable because of the promotions available. so that consumers are motivated
and interested in buying.
Other research supported by the findings of this study is research conducted
by Cindy et al. (2019) and Nur Sakinah et al. (2021), both of which suggest that
there is a positive effect of price on purchasing decisions mediated by buying
interest. The results of this study support the results of the study even though no
purchases were made online. In both of these studies, the industry studied was the
retail industry with in-store purchases, while the research conducted was on online
purchases. These results are also in line with previous research conducted by
Baariq et al. (2021), which suggested that purchase intention mediates the effect of
price on purchasing decisions with a positive and significant influence. This
indicates that any change in product prices will result in higher consumer interest
in shopping for SME products online.

D. CONCLUSION
Based on the research that has been done and the results of the data analysis
that has been processed, it can be concluded that product packaging has a positive
and significant effect on the Interest to buy online for SME products in the city of
Makassar; Prices have a positive and significant effect on the interest in buying
online for Makassar city SME products; Product packaging has a positive and
significant effect on online purchasing decisions for Makassar city SME products;
Price has no positive and insignificant effect on online purchasing decisions for
Makassar City SME products; Interest in Buying has a positive and significant effect
on online purchasing decisions for Makassar City SME products; Packaging has a
positive and significant effect on online purchasing decisions through interest in
buying Makassar City SME products; and Price has a positive and significant effect
on online purchasing decisions through interest in buying Makassar City SME
products.

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