Location and Promotion on Purchase Decisions Through Price as an Intervening Variable at SKG Siola Surabaya

Purpose: This study analyzes the influence of location and promotion on purchasing decisions, with price as a mediating variable, at the Surabaya MSME Center, Kriya Gallery (SKG) Siola, Surabaya. The study highlights the importance of location accessibility and promotional strategies in influencing consumer purchasing behavior, as well as the mediating role of price perception in strengthening these relationships.
Research Methodology: A quantitative causality approach was used. The population consisted of consumers who had made purchases at SKG Siola. Purposive sampling was applied based on two criteria: having made at least one purchase and willingness to participate. Data were collected using structured questionnaires. Instrument validity was tested using Pearson correlation, while reliability was assessed using Cronbach’s alpha. Path analysis and goodness-of-fit testing were conducted using SmartPLS.
Results: All instruments showed strong reliability (α = 0.902–0.927) and validity. The model demonstrated acceptable fit (RMSEA = 0.033; GFI = 0.972; CFI = 0.907). Location and promotion significantly influence purchasing decisions and price perception. Price also significantly affects purchasing decisions and partially mediates the relationship between location, promotion, and purchasing decisions.
Conclusions: Location, promotion, and price are significant determinants of purchasing decisions, with price acting as a partial mediator.
Limitations: The study is limited to one MSME center, uses non-probability sampling, and a cross-sectional design, limiting generalizability and causal inference.