THE ROLE OF WORD OF MOUTH (WOM) IN MEDIATING THE RELATIONSHIP BETWEEN PRICE AND PURCHASE DECISIONS

Abstrak

This study aims to examine the role of price in influencing purchase decisions with word of mouth (WOM) as a mediator. The sample of this study was 100 respondents. Data were collected by distributing questionnaires using purposive sampling to everyone who had made a purchase at Alfamidi, Ternate City, North Maluku at least 3 times in the past month. The collected data were then analyzed using the Partial Least Square-Structural Equation Modeling (PLS-SEM) technique with the help of the SmartPLS 3 application. Price has a positive and significant effect on purchasing decisions and word of mouth is the result of the analysis of this study. Word of mouth has a positive and significant effect on purchasing decisions. Word of mouth is able to significantly mediate the effect of price on purchase decisions.