TRUST THE BRAND, FEEL THE SERVICE, BUY THE PRODUCT: A STUDY OF DIGITAL RETAIL APP USERS

Abstract

This study is motivated by the rapid development of the digital retail industry in Indonesia, which has created intense competition between modern retail outlets and e-commerce platforms. In this context, an in-depth understanding of the factors influencing consumer behavior, particularly regarding brand trust, price perception, and service quality, is essential. The aim of this research is to analyze the effect of these three variables on purchase intention and purchase decision, as well as to examine the role of purchase intention in influencing purchase decision among Alfagift application users. The research method employed is Structural Equation Modeling (SEM) using AMOS software, based on data from 254 respondents selected through purposive sampling. The findings reveal that brand trust does not have a significant effect on either purchase intention or purchase decision. In contrast, price perception and service quality have a positive and significant influence on both. However, purchase intention is not proven to significantly affect purchase decision. These results imply that competitive pricing and optimal service quality are key factors in driving purchase decisions, while brand trust alone is insufficient to influence consumer buying behavior.