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The Impact of Food Quality and Price Discount Toward Brand Image and Purchase Decision

This study investigates the effects of food quality and price discounts on purchase decisions at KFC in Indonesia, with brand image serving as a mediating variable. Results indicate that both food quality and price discounts significantly influence purchase decisions, mediated by brand image. The findings highlight the importance of maintaining high food quality and strategic pricing to enhance brand image and drive consumer purchases.

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0% found this document useful (0 votes)
66 views12 pages

The Impact of Food Quality and Price Discount Toward Brand Image and Purchase Decision

This study investigates the effects of food quality and price discounts on purchase decisions at KFC in Indonesia, with brand image serving as a mediating variable. Results indicate that both food quality and price discounts significantly influence purchase decisions, mediated by brand image. The findings highlight the importance of maintaining high food quality and strategic pricing to enhance brand image and drive consumer purchases.

Uploaded by

zairacatibog123
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

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php/Ekonomi
Jurnal Ekonomi, Volume 12, No 04 2023
ISSN: 2301-6280 (print) ISSN: 2721-9879 (online)

THE IMPACT OF FOOD QUALITY AND PRICE DISCOUNT TOWARD


BRAND IMAGE AND PURCHASE DECISION
Putri Fadilah1, Barkah2, Erna Listiana3, Hasanudin4, Rizky Fauzan5
Faculty of Economics and Business, Universitas Tanjungpura, Indonesia 1,2,3,4,5

ARTICLE INFO ABSTRACT


In today's globalized world, business rivalry is becoming more intense on both
a domestic (national) and international level. Currently, the business sector
that continues to experience rapid growth is the fast food industry. With the
increasing population in Indonesia, the demand for fast food also continues to
increase. One example of a fast food product that is popular in Indonesia is
KFC. The Indonesian public's view of KFC as a food that has high standards of
quality safety, and health has become very strong. When asked about the best
place to enjoy fried chicken in Indonesia, KFC always comes up as one of the
first choices in their minds. Products produced by this international company
Keywords:
offer the assurance of superior food quality. KFC's food quality is an important
Food Quality, Price Discount, Brand
factor that influences consumer purchase decisions, and this must be the
Image, Purchase Decision.
company's focus on improving the quality of its products to win competition
in the fast food industry. This study will examine the extent to which the
impact food quality and price discounts on purchase decisions, with the brand
image as a mediating variable at KFC in Indonesia. In collecting data, this
research applied a questionnaire method involving 219 respondents selected
through a purposive sampling technique. In data analysis, Structural Equation
Modeling (SEM) was used with the help of the AMOS 24 tool. The results of
this research reveal that food quality and price discounts have a significant
influence on purchase decisions, which are mediated by brand image.

Copyright © 2023 Economic Journal. All rights reserved.


E-mail:
is Licensed under a Creative Commons Attribution-NonCommercial 4.0
putpad14@[Link]
International License (CC BY-NC 4.0)

1. INTRODUCTION
In today's globalized world, business rivalry is becoming more intense on both a domestic
(national) and international level. We know that consumers needs and desires for a product are
increasing day by day and are unlimited [1]. Currently, the business sector that continues to experience
rapid growth is the fast food industry sector. As the population in Indonesia increases, the demand for
fast food also continues to increase [2]. People like instant things because they save time and are easier to
serve [3]. Food at fast-food restaurants has become an integral aspect of people's lives today [4]. These
fast-food restaurants were originally created as a business model to accommodate busy people,
immigrants and day workers who often did not have the opportunity to sit in a restaurant and wait for
their food order.
One example of a fast food product that is popular in Indonesia is KFC. The Indonesian public's
view of KFC as a food that has high standards of quality safety, and health has become very strong. When
asked about the best place to enjoy fried chicken in Indonesia, KFC always comes up as one of the first
choices in their minds [5]. The information and findings from these researchers can be used to design
more effective regulations, provide encouragement to businesses and create an environment that
supports growth in the fast food industry. Based on the website [Link] [6] shows that by the end of
2023, the company will operate a total of 739 stores located in 32 of 38 provinces, over 150 cities in
Indonesia and employs around 15,492 workers with revenues of more than IDR 3.317 trillion. Kentucky
Fried Chicken, which is now better known by its abbreviation KFC, is a fast food restaurant with a strong
brand image. A sign of this popularity can be seen from KFC winning the title as the most superior brand
in the fast food restaurant sector in Indonesia in 2022, according to analysis results Top Brand Award [7].
The Top Brand Award is a recognition for leading brands, with a survey covering around 8,500 people
who gave responses from various big cities in Indonesia [7]. From this research, we can understand more
The Impact of Food Quality and Price Discount Toward Brand Image and Purchase Decision. Putri
Fadilah,[Link]
1951
[Link]
Jurnal Ekonomi, Volume 12, No 04 2023
ISSN: 2301-6280 (print) ISSN: 2721-9879 (online)

deeply the potential and obstacles in the fast food industry, while recognizing opportunities for long-term
growth and sustainable development.
The food products presented by this international company provide assurance of the best food
quality. Restaurants must be able to compete by maintaining high food quality standards so that they can
attract visitors' interest in the menu choices they serve [8]. The success of the restaurant business
depends on food quality, which can be seen through the extraordinary taste of the food served [9]. Food
quality is related to purchase decisions because when the food quality provided is better, customers will
feel the deliciousness of the food, so they will decide to buy it. Findings from research conducted by
Sartien et al., (2022) [8]; Hidayat et al., (2023) [10]; Pebriani et al., (2023) [11] states that food quality
influences purchase decisions, while findings by Dwiyanti & Saifuddin (2022) [9] proves that food quality
has no effect on purchase decisions.
Food quality is used to support various available marketing strategies [8]. The marketing strategy
is not only food quality, price discounts, but also the right marketing strategy. On various occasions,
companies compete to offer several promotional prices, including price discounts [12]. According to
research conducted by Anwar & Andrean (2021) [13] customers usually prefer to choose products that
have a more economical price even though the brand is less well-known than brands that are more
expensive but well-known. When the price set is in line with the benefits felt by customers, they will
decide to purchase the product [14]. Findings from research conducted by Aditi & Young (2019) [15];
Sutrisna et al., (2023) [16]; Haitao (2022) [17] stated that price has a strong impact on the decision to
buy, while the findings by Sairun & Sugito (2023) [18]; Hidayat et al., (2023) [10]; Mbete & Tanamal
(2020) [19] proves that price has no effect on purchasing decisions.
According to Waluya et al., [20] shows that the main element that influences the decision to buy is
brand image. Brand image has an important role as an intermediary factor in influencing the relationship
between food quality and price discounts on consumer purchase decisions. Brand image has a big
influence on restaurant development. The way a restaurant's image is formed can change for the better or
worse, depending on how consumers evaluate the product after consuming it [21]. Stronger brand image
in mind of customers, the stronger the customer's confidence in making purchase decisions for the
products they buy. Brand image is an intermediary that indirectly influences purchase decisions because
building and creating a positive and strong brand image (both in terms of product quality safety, and
comfort provided to consumers) can lead to more profitable purchase decisions [22].
From discussion above, this research needs to be carried out because there are significant and
insignificant differences between the food quality and price discount variables on purchase decisions and
brand image becomes an intermediary that indirectly influences purchase decisions. Therefore, the
purpose of this research is also to measure the extent of the impact or understand the impact of food
quality and price discounts on purchase decisions at KFC in Indonesia, with brand image as a mediating
variable.
Literature Review
Food Quality
Food quality is the attribute of a food quality that customers find acceptable [23]. From this
research, it can be explained that food quality is KFC respondents' assessment of the quality
characteristics of food or drinks at KFC that are acceptable to consumers. In this research, there are
indicators that refer to the research [23] that is:
1. Quality in terms of taste, quality in terms of taste refers to the level of goodness or excellence of the
taste of a food or drink. This includes the extent to which the food or drink is palatable, delicious,
or appetizing.
2. Quantity or portion, refers to how much food or drink is served or consumed in one meal or drink.
3. Distinctive taste refers to the special and unique properties in the taste of a food or drink that
separate it from others.
4. Hygiene or cleanliness refers to the cleanliness and sanitation guidelines used when food is
processed, stored, and served.
5. Packaging quality includes aspects such as storage, protection, and the way the product is
displayed.
Price Discount
Price discount is a discount given to the customer of the normal price of the product indicated on
the product label or packaging [24]. Meanwhile Prasetyo et al., [25] explains that discounts are a form of
The Impact of Food Quality and Price Discount Toward Brand Image and Purchase Decision. Putri
Fadilah,[Link]
1952
[Link]
Jurnal Ekonomi, Volume 12, No 04 2023
ISSN: 2301-6280 (print) ISSN: 2721-9879 (online)

appreciation given by sellers to buyers as compensation for special activities that have been carried out.
Price discount is the respondent's assessment of the discounts provided to customers from the standard
KFC menu price. In this research, there are indicators that refer to the research Chao & Liao [26] that is:
1. Offering an attractive price, which means that the company's discount price for customers can help
them save own costs.
2. Providing benefits for consumers means that when consumers buy products that are sold at
discounted prices, consumers will get many benefits both in purchasing at affordable prices and so
on.
3. Provide value to consumers, meaning that consumers will feel the value and impression of the
products offered and the value provided by the company.
Brand Image
According to Sutiyono & Hadibrata [27] Brand image is a form of brand identity for products
offered to customers and differentiates these products from competitors' products. Brand image refers to
how a customer views a brand as a representation of the associations they have made with that brand in
their minds [28]. Brand image is the respondent's assessment of KFC's identity, which differentiates it
from other international franchise companies. In this research, there are indicators according to
Hernikasari et al., [29] that is:
1. Corporate Image, meaning the perception formed and felt by individuals towards a company,
which includes a general view of the company's identity, values, reputation, goals and quality.
2. Product or consumer image, this is similar to company image, but focuses more on people's
perceptions and views of individual products, not the entire company.
3. User Image, meaning the perception held by users or consumers regarding certain products,
services, or brands.
Purchase Decision
Purchase decisions are decisions taken by consumers in purchasing a product after considering
various information [30]. It can be explained that the purchase decision is the KFC respondent's
assessment of their decision when buying food/drinks at KFC after considering various information. In
this research, there are indicators according to Kotler & Keller [31] that is:
1. Confidence when deciding to buy, is a consumer's attitude towards a product or brand before they
make a purchase decision.
2. Careful consideration, analysis and evaluation processes are carried out carefully and carefully
before making a decision.
3. Choice priority, is the order assigned to the various options or choices available when making a
decision.
Food Quality and Brand Image
A brand image that is known has a superior level of quality and is increasingly superior to brands
that are less popular because brands that are popular generally have many users who can be used as
consideration by new customers who want to buy them. It is not surprising that restaurants with good
food quality have strong demand from customers [32]. Customers evaluate various factors to evaluate
food quality, such as food sensation, nutritional content, and various proposed menus as important
points. Apart from these points, the quality of freshness, aroma, presentation, and serving size are also
recognized as the main indicators of food quality [33]. From this opinion, good food quality will help build
a positive and strong brand image for the Company. This finding has also been proven by previous
research conducted by (Solunoglu, 2020) [32] confirming that a significant interaction between
perceptions of food quality served to customers in restaurants and brand image has been identified.
Based on the previous explanation, it can be interpreted that the higher the quality of the food, the more
positive the brand image that is formed in customers thoughts.
Price Discount and Brand Image
According to Budiharseno [12] Price discounts can help consumers who have been loyal to the
brand and switch to the product by getting a discounted price. This product has a high price, but because
it has built a positive brand image, this product remains the desired choice for consumers. This means
that if prices become more relative to the quality and capabilities of consumers, the consumer brand
image will increase and will be increasingly sought after by all consumers [34]. According to Hermiyenti
& Wardi [14] customers tend to choose brands they like at the right price. It can be concluded that price

The Impact of Food Quality and Price Discount Toward Brand Image and Purchase Decision. Putri
Fadilah,[Link]
1953
[Link]
Jurnal Ekonomi, Volume 12, No 04 2023
ISSN: 2301-6280 (print) ISSN: 2721-9879 (online)

has the ability to influence consumers' views regarding brand exclusivity so the brand strategy
implemented by the company must seriously consider the price factor.
Food Quality and Purchase Decision
According to Sartien et al., [8] indicates that there is a positive relationship between food quality
and purchase decisions because when respondents were asked for their opinion regarding the influence
of food quality on their purchasing decisions, most of them responded that the uniqueness of food quality
was a driving force in their purchase decisions. According to Dwiyanti & Saifuddin [9] Food quality is the
key to the success of the restaurant business, it can be assessed by food quality in the form of dishes that
taste good. This proves that food quality is also a consideration before consumers decide to make a
purchase. At the same time, food quality has a significant impact in consumers' purchase decisions, so it
can be seen that as food quality increases, purchasing decisions also increase [11]. It can be concluded
that consumers tend to choose food that is considered to have high quality and meets their expectations,
thereby increasing the possibility of a purchase decision.
Price Discounts and Purchase Decisions
According to Insani & Madiawati [35] One aspect that consumers must pay attention to when
purchasing is an understanding of price. It is widely known that price is one of the main elements that
buyers consider when they make a purchasing decision [36]. It is believed that by offering a price break,
customers will be more inclined to purchase the company's goods [18]. The more competitive the price
offered, the more purchasing decisions are made; this shows a favourable relationship between the price
and the purchase decision [37]. Therefore, it can be said that price discounts are discounts set by sellers
to consumers because consumers have made purchases in sufficient quantities so price discounts are a
form of appreciation from the company [18].
Brand Image and Purchase Decision
A good brand image will increase purchase decisions, because the stronger the impression the
company forms in the minds of consumers, the greater the trust consumers give to the product and the
possibility of buying the product [38]. Companies must pay serious attention to managing their brand
image to improve brand image and influence purchase decisions, so that the quality in the brand becomes
the main point in determining the decision to buy a product [39]. According to Narayana & Rahanatha
[38] explains that the stronger the view that consumers form about a brand image, the more likely they
are to purchase the product. Increasing the brand image that is formed in consumer perception, the
greater the possibility of a decision to buy the product [21].
Food Quality in Purchase Decisions mediated by Brand Image
Food quality is the most important component of the overall restaurant experience and is an
important requirement to meet the expectations and needs of restaurant customers, so that maintaining
superior food quality is the primary component of maintaining a restaurant's brand image [40]. The
quality of food is related to the purchase decision through the brand image, because if the quality of the
food is good, then it will result in benefits for both sides. So it's not surprising that restaurants that serve
high-quality food receive high demand from customers [32]. The brand image of a product will benefit
consumers, because it will influence the way consumers judge other competing brands [41]. This study is
in line with a study by Sartien et al., (2022) [8], which states that purchasing decisions are influenced by
two factors, namely food quality and brand image.
Price Discount on Purchase Decision mediated by Brand Image
One aspect when determining a purchase decision is the choice of brand or brands to pay attention
to. Of course, consumers will think about price compatibility issues and the image embedded in the
product as well as the benefits offered by the product [42]. This is demonstrated by the influence of
affordable prices and a good brand image, so that consumer purchase decisions will certainly be much
better. According to Maghribi & Juniwati [43] which states that brand image is an assumption that exists
in consumers view that is formed when people see or hear about a brand that arises from experience and
can add value to a product or company. According to Hermiyenti & Wardi [14] states that in purchase
decisions, price is a direct effect for consumers to decide whether to make a purchase or not. According to
Pranoto et al., [44] stated that brand image mediates the effect of price on purchase decisions. Therefore,
if a product has a good brand image, the price presented is in line with its benefits and quality, so
customers will decide to choose a product with the right price and has a good product image.
Conceptual framework
Based on the description above, the research framework can be built as follows:
The Impact of Food Quality and Price Discount Toward Brand Image and Purchase Decision. Putri
Fadilah,[Link]
1954
[Link]
Jurnal Ekonomi, Volume 12, No 04 2023
ISSN: 2301-6280 (print) ISSN: 2721-9879 (online)

Figure 1. Research Framework


Research Hypothesis
Based on the problem formulation and conceptual framework above, the research hypothesis
proposed by the researcher is as follows:
H1: Food Quality has a significant effect on Brand Image
H2: Price Discount has a significant effect on Brand Image
H3: Food Quality has a significant effect on Purchase Decision
H4: Price Discount has a significant effect on Purchase Decision
H5: Brand Image has a significant effect on Purchase Decision
H6: Food Quality has a positive and significant effect on Purchase Decisions which is mediated by Brand
Image
H7: Price Discount has a positive and significant effect on Purchase Decisions which is mediated by Brand
Image

2. METHOD
In this research used quantitative methods. This research is also causal research. Respondents who
meet the predetermined criteria will be given a questionnaire using a 5-point Likert scale, starting from
"disagree" to "strongly agree". Food quality is measured based on several dimensions, namely quality in
terms of taste, quantity or portion, distinctive taste, hygiene or cleanliness, and the quality of packaging
developed by Wiwoho [45] and has been modified by the author. Meanwhile, price discounts are
measured based on 3 dimensions, namely offering an attractive price, providing benefits for consumers,
and providing value to consumers as proposed by Chao & Liao (2016) [46]. Meanwhile, to measure brand
image using 3 indicators proposed by Hernikasari et al., (2022) [47] namely maker image/corporate
image, product or consumer image/product image, and user image. Next, purchase decisions are
measured based on 3 indicators proposed by Kotler & Keller (2021) [31] namely confidence when
deciding to buy, careful consideration, and priority choices.
The population in this research is all KFC consumers in Indonesia. In this research, there were 219
respondents who were collected and researched as a sample. The sampling technique uses purposive
sampling technique. The samples that are the subjects of this research are: 1) respondents aged at least
17 years, who live in Indonesia, 2) respondents who visited and enjoyed the KFC menu at least 2 times in
the last 1 month, 3) Respondents are KFC consumers who have ever purchased by getting a discount, 4)
the respondent acts as a purchasing decision maker. Sample locations were obtained through an online
questionnaire in Indonesia.
In this research, Structural Equation Modeling (SEM) was used with the AMOS 24 statistical tool
to analyze and evaluate the measurement model and structural model of the research construct being
built. Evaluation of model fit will be carried out using goodness of fit index parameters such as chi square

The Impact of Food Quality and Price Discount Toward Brand Image and Purchase Decision. Putri
Fadilah,[Link]
1955
[Link]
Jurnal Ekonomi, Volume 12, No 04 2023
ISSN: 2301-6280 (print) ISSN: 2721-9879 (online)

(x2), CMIN/DF, Root Mean Square Error of Approximation (RMSEA), Root Mean Square Residual (RMR),
Goodness of Fit Index (GFI), Tucker Lewis Index (TLI), Incremental Fit Index (IFI), Comparative Fit Index
(CFI), Normed Fit Index (NFI). Construct validity will be evaluated by considering the standardized
loading factor (SLF) value which must be ≥ 0.50 (Hair et al, 2014: 618), while construct reliability will be
evaluated based on the Construct Reliability (CR) and Average Variance Extracted (AVE) values. Next,
SEM analysis will be carried out on the structural model to test the research hypothesis that has been
built, using the calculated t-value for each coefficient. A hypothesis can be said to have a causal
relationship if the t-count value ≥ t-table (1.96) with a significance level α (usually α = 0.05).

3. RESULT AND DISCUSSION


Results
Respondent Characteristics
The analysis of respondent profiles in this survey is based on the following demographics:
Table 1. Characteristics of Respondents
Categories Items f %
Kalimantan 82 37.5
Java 51 23.3
Papua 1 O.5
Sulawesi 12 5.5
Domicile Sumatra 19 8.6
Bali 46 21.0
Nusa Tenggara 2 0.9
Maluku 2 0.9
Other 4 1.8
Total 219 100
17 to < 21 years 46 21.0
21-30 years old 135 61.7
Age 31-40 years old 17 7.8
41-50 years old 15 6,8
>50 years 6 2.7
Total 219 100
Gender Man 82 37.5
Woman 137 62.5
Total 219 100
Elementary school 1 0.5
Middle/Junior High School 4 1.8
Education high school/high school 117 53.4
D1/D2/D3/D4 29 13.2
Bachelor degree) 64 29.3
Postgraduate (S2/S3) 4 1.8
Total 219 100
Student 7 3,2
College student 69 31.5
Businessman 13 5.9
Private sector employee 50 22.8
Work Civil servants 17 7.7
POLRI/TNI 20 9.2
BUMN 5 2,3
Other 38 17.4
Total 219 100
< IDR 2 million 27 12.3
IDR 2-4 million 43 19.6
Income/month > IDR 4-6 million 35 16.0
(For those who are already working) > IDR 6-8 million 8 3.7
> IDR 8-10 million 1 0.5
The Impact of Food Quality and Price Discount Toward Brand Image and Purchase Decision. Putri
Fadilah,[Link]
1956
[Link]
Jurnal Ekonomi, Volume 12, No 04 2023
ISSN: 2301-6280 (print) ISSN: 2721-9879 (online)

Categories Items f %
> IDR 10 million 7 3,2
Not yet working 98 44.7
Total 219 100
< IDR 1 million 39 17.8
IDR 1-1.5 million 35 16.0
Pocket money/month > IDR 1.5-2 million 15 6,8
(For those who haven't worked) > IDR 2-2.5 million 3 1.4
> IDR 2.5 million 6 2.7
Already Working 121 55.3
Total 219 100
Based on the table above, it can be seen that the majority of respondents' domiciles were from the
island of Kalimantan, 37.5%, with ages 21-30 years 61.7%. Women dominate respondents as much as
62.5%. In terms of educational background, respondents are generally high school/high school graduates
and graduates (S1), while the average job is dominated by college students at 31.5%, and the average
income for those already working is IDR 2-4 million 19, 6% and the average pocket money for all
respondents is < IDR 1 million 17.8%.
Measurement Models
The related results presented are as follows:
Table 2. Measurement Model Results
Variable Items SLF AVE CR
Food KFC has a quality taste that suits my taste. 0.872 0.760 0.983
Quality KFC is able to maintain the quality of its food at all times. 0.883
I can freely order food at KFC because there are many 0.852
variations on the menu and it is always available.
The food portions at KFC are according to my wishes. 0.787
The portions of food at KFC are in accordance with the price 0.829
and quality.
In my opinion, the food at KFC has a unique spice content. 0.900
KFC food has a distinctive taste, which I feel is different from 0.915
other similar foods.
In my opinion, all the food and drink menus at KFC meet the 0.883
hygiene/cleanliness aspect.
I think KFC packaging is quite practical, easy to carry. 0.902
KFC packaging makes it easy for me to consume it. 0.892
Price The price discount set by KFC caught my attention. 0.875 0.792 0.958
Discount When there is a sales promotion at KFC such as a Price 0.893
Discount, I prefer to buy more.
The Price Discount that the KFC Company gives to consumers 0.890
can save my expenses.
I can still feel the benefits of the quality of the food and drinks 0.903
offered by KFC, even when price discounts occur.
Brand KFC is known as a reliable international franchise company in 0.903 0.702 0.963
Image the fast food industry.
KFC menu variations are known to have distinctive and 0.853
delicious flavors.
When they hear the fried chicken menu, many people 0.797
associate it with KFC.
KFC consumers are known as people who like practicality. 0.858
KFC consumers are known as people in the high income 0.774
segment.
Purchase I feel confident when making decisions to buy food/drinks 0.936 0.861 0.978
Decision at KFC
My decision to buy food/drinks at KFC has been through 0.935

The Impact of Food Quality and Price Discount Toward Brand Image and Purchase Decision. Putri
Fadilah,[Link]
1957
[Link]
Jurnal Ekonomi, Volume 12, No 04 2023
ISSN: 2301-6280 (print) ISSN: 2721-9879 (online)

Variable Items SLF AVE CR


careful consideration
Buying food/drinks at KFC is my priority choice. 0.894
My decision to buy food & drinks at KFC was the right 0.947
choice.
Table 2. is the outcome of evaluating the general model's validity and dependability. In the
complete model, every indicator variable's standardized loading factor (SLF) value is more than 0.50. This
indicates that every indicator has been deemed legitimate and is thought to be capable of measuring the
construct of the entire model that is being constructed. Consistent results are presented by the reliability
test. Every instrument was deemed trustworthy and possessed the capacity to measure the entire model's
constructions with consistency. This is demonstrated by the construct reliability (CR) value, which came
in at ≥0.70, and the avariance extracted (AVE) value of all indicator instruments, which came in at ≥0.50.
Table 3. Goodness of Fit Index
Goodness of Fit Index Cut Off Value Results Fit
χ2 Expected to be low 657,928
Df 225
χ2- Significance Probability ≥ 0.05 0,000
CMIN/DF ≤ 3.00 2,924 Good Fit
RMSEA ≤ 0.08 0.094 Not Fit
RMR < 0.05 0.159 Not Fit
NFI ≥ 0.90 0.899 Not Fit
IFI ≥ 0.90 0.931 Good Fit
TLI ≥ 0.90 0.922 Good Fit
CFI ≥ 0.90 0.931 Good Fit
In table 3, the model conformance test shows that the model suitability requirements are accepted,
and conformity can be stated. Four measurements show good suitability. If there are 3-4 measurements
with a good level of suitability or above the cut-off value then the research model configuration can be
declared adequate and accepted.

Figure 2. Full Model Testing

Hypothesis Testing
The results of the causal relationship test between variables in the structure of this research are as
follows:
Table 4. Hypothesis Testing
Hypotheses Path Estimate S.E CR P Conclusion
H1 Brand Image <--- Food Quality 0.634 0.071 8,894 0,000 Significant
H2 Brand Image <--- Price Discount 0.333 0.056 5,914 0,000 Significant
H3 Purchase Decision <--- Food Quality 0.422 0.081 5,222 0,000 Significant
H4 Purchase Decision <--- Price Discount 0.520 0.061 8,494 0,000 Significant
H5 Purchase Decision <--- Brand Image 0.173 0.082 2,108 0.035 Significant
The Impact of Food Quality and Price Discount Toward Brand Image and Purchase Decision. Putri
Fadilah,[Link]
1958
[Link]
Jurnal Ekonomi, Volume 12, No 04 2023
ISSN: 2301-6280 (print) ISSN: 2721-9879 (online)

Table 4 displays the results of AMOS processing. The p value of the food quality variable on brand
image is 0.000, indicating a value of less than 0.05 (α = 0.05), it can be seen that the first hypothesis has a
positive and significant effect. The p value of the price discount variable on brand image is 0.000 for the
second hypothesis, indicating that price discounts significantly influence brand image. The p value for the
food quality variable in purchase decisions which supports the third hypothesis is 0.000. This shows how
purchase decisions are influenced positively and significantly by food quality. The p value of the price
discount variable in the purchase decision, which represents the fourth hypothesis, is 0.000. that price
discounts positively and significantly influence purchase decisions. The fifth hypothesis, which shows that
brand image has a positive and significant influence on purchase decisions with a p value of 0.035.
The indirect impact of the mediating variables is presented in table 5. which contains the results of the
sobel test.
Table 5. Sobel Test – Significance of Mediation
Sobel Test Two-Tailed Description
Statistics Probability
Food Quality --> Brand Image --> Purchase 2,053 0.040 Significant
Decision
Price Discount --> Brand Image --> 1,988 0.046 Significant
Purchase Decision
Based on the Sobel test results shown in table 4.5. The sobel test statistic value obtained was 2.053
and the p-value was 0.040. These results show that the Sobel test statistic value is greater than the t-table
value of 1.96. Likewise, the p-value obtained shows a value smaller than 0.05 (α = 0.05). These results
show that there is a significant indirect influence between food quality on purchase decisions through
brand image. Suitable results were also obtained at the price discount where the sobel test statistic value
was greater than 1.96, namely 1.988 and the p-value was smaller than 0.05 (α = 0.05), namely 0.046. So,
there is a significant indirect influence between price discounts on purchase decisions through brand
image.

4. CONCLUSION
This research aims to examine and analyze food quality and price discounts which influence
consumer purchase decisions in purchasing KFC food products and explore the mediating role of brand
image. Structural equation modeling showed that all hypotheses were supported. Through the results of
this research, it can be concluded that in the fast food industry sector today, food quality is one of the
factors that business people need to pay attention to. The success of the restaurant business depends on
food quality, which can be seen through the extraordinary taste of the food served [9]. Customers
evaluate many factors to assess food quality such as food sensation, nutritional content and various
proposed menus as important points. This research also tested the role of brand image as a mediating
variable in the influence of food quality on purchasing decisions and the results of the test were accepted.
Thus, the quality of the brand causes the main point in determining the decision to buy the product [39].
Not only food quality, a businessman also needs to pay attention to the influence of the price discount
strategy on purchase decisions. This research concludes that there are positive and significant results,
which means that price discounts in KFC's marketing strategy will be able to increase product purchase
decisions for this brand. Brand image is also successful in mediating this variable, as it is known that the
presence of price discounts in the business world really attracts consumer attention, which can make
consumers aware of the presence of a good KFC brand image. Researchers hope that this research will
contribute by increasing understanding, providing information, and expanding knowledge for all parties
involved. KFC in Indonesia should continue to focus attention on other marketing strategies, apart from
just providing price discounts and always maintaining the food quality that is unique to the KFC company.
This is important to achieve success in increasing consumer purchase decisions and also to strengthen
KFC's brand image. In this way, KFC can ensure that its brand remains strong in the minds of consumers
in Indonesia and is not easily replaced by other competing brands.

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