Analysis of Factors Influencing Purchase Decisions at Gramedia Matraman Bookstore Using Structural Equation

This article aims to test the factors that may influence purchase decisions at Gramedia Bookstore, Matraman. The researchers hypothesize that product diversification and price are related to purchase intention, which will ultimately affect purchase decisions. Data was obtained from 200 respondents who are customers of Gramedia Bookstore, Matraman. The questionnaire contained questions based on respondents' experiences related to the variables of product diversification and price that encourage purchase intention and purchase decisions, measured using a Likert scale. The data were analyzed using a structural equation modeling (SEM) approach with 4 latent variables, where the exogenous variables are product diversification and price, while the endogenous variables are purchase intention, with the final output being purchase decision. The analysis showed that the variables of product diversification and price have a significant influence on purchase decision through the purchase intention variable. Both of these variables are significant towards the inter-variable, which is purchase intention, with Critical Ratios of 2.82 and 32.22 for product diversification, and 4.91 & 32.22 for price. Therefore, purchase intention becomes the right inter-variable to influence the purchase decision variable.