THE ROLE OF LOCATION MEDIATION ON PURCHASE INTEREST TOWARDS CONSUMER PURCHASE DECISION IN RETAIL INDUSTRY

Abstract

Not all purchase interest will lead to a purchasing decision, one of the keys to success in the retail industry is through the role of location (captive market). This study aimed to explore the role of location (captive market) in mediating the linkage between purchase interest and purchase decision of minimarket consumers in Kediri City. The current study uses quantitative methods by collecting data accidentally through surveys of Indomaret and Alfamart minimarkets consumers in Kediri City. Using Hair et al.'s theory, the sample was determined to be 150 respondents. All data obtained were analyzed using path analysis via the SPSS and AMOS applications. The study results indicate that the role of location (captive market) is able to mediate the linkage between purchase interest and consumer purchase decision. Partially, purchase interest and location have a positive and significant impact on consumer purchase decision. Thus, these results enhance the understanding that location (captive market) plays an important role for purchase interest in the consumer purchase decision process, particularly in the context of the retail industry.