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A Study of Customer Preferences Through Product Attributes and Customer Perceived Value Towards Purchase Decision of

Growing Medium by Home Gardeners

Angela Thrisananda Kusuma1*, Nurrani Kusumawati1

1 School of Business and Management, Bandung Institute of Technology, Bandung, Indonesia

*Corresponding Author: angela_thrisananda@sbm-itb.ac.id Accepted: 15 August 2022 | Published: 1 September 2022

DOI:https://doi.org/10.55057/aje.2022.3.3.1

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Abstract: As the effect of the lockdown and social distancing during the COVID-19 pandemics impacted the difficulty in engaging in social engagement with others, more people are seeking out green spaces and increased exposure to nature as ways to relieve stress and exhaustion.

Many people have taken up new hobbies as a result of the pandemic, including home gardening. The survey has shown the increase of gardening participation during COVID-19, which is now more well represented by millennials. One of the most important parts for plants is growing medium product that plays a role as where the plants are grown, to serve as a water reservoir for plants and give nutrients. However, according to previous research choosing the right growing medium might be challenging for early gardeners. There are various options available, each with its own advantages and disadvantages. Meanwhile, Satu Bumi as the new startup producing growing mediums for home gardeners find difficulties to get strong references to optimise the product because there is still limited research in this industry, especially through product attributes and customer perceived value. Therefore, this study aims to provide research insights about the home gardeners purchase decision that covered the most preferred product attributes and customer perceived value. Researchers use quantitative methods to analyse the data through questionnaires by using non-probability sampling with 215 respondents. This research utilised the PLS-SEM method through SmartPLS software. The research indicated that product quality, packaging, and usage instruction become the attributes that influence home gardeners’ purchase decision. On the side of customer perceived value, product-related value and social-related value are also influencing the purchase decision of home gardeners. These findings can be useful to strategize the product development and marketing strategy for growing medium brands, by focusing on the preferred product attributes and putting attention on how the gardener perceives the value from the product.

Keywords: Satu Bumi; growing medium; product attributes; perceived value; purchase decision

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1. Introduction

Due to the COVID-19 pandemic that has happened since early 2020, governments in many of the countries have implemented lockdowns in order to reduce the COVID-19 transmission.

Key policy measures that are not limited to self-isolation and social distancing has impacted many aspects of people’s lives such as the psychological and also physical wellbeing (Cellini, Canale, Mioni, & Costa, 2020; Cheval, B., Sivaramakrishnan, H., Maltagliati, S., Fessler, L.,

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Forestier, C., Sarrazin, P., & Boisgontier, M. P., 2020; Galea, Merchant, & Lurie, 2020:

Pfefferbaum & North, 2020).

The effects of COVID-19 pandemic has brought many people to try their new hobbies, one of them is Home Gardening. According to the research done by Whitinger, D., & Cohen, P. (2021) on their 361 page National Gardening Survey, the gardening participation during COVID-19 pandemic was increased with 18.3 million new gardeners, 42% of them stated that they increased the number of their gardening due to the pandemic, and only 9% of the gardeners do less gardening. Still based on the National Gardening Survey 2021, it was revealed that gardening participation remained flat or declined among Baby Boomers generation while the growth is well represented by Millenials, both female and male. Research also indicates that more than 80% of the new gardeners will continue gardening after the pandemic. This fact could be used as the forecast of the future gardening trend if what the respondents said truly happened when the pandemic is over. Survey results also show that 51% of respondents grow at least one type of fruit or vegetable in a home garden.

OnePoll (a market research company) and Article (a popular online furniture store) revealed survey results to 2,000 millennials between 25 to 39 years old that 7 out of 10 of them worry a lot about keeping their plants alive. Caring over a few plants, according to 19 percent of those surveyed, seems to be more stressful than having a root canal. 67% of them even called themselves as the plant murderer. In Indonesia, 51.99% of home gardeners stated that the maintenance efforts is the main obstacles in gardening, while 16.42% of the respondents said that pest and plant diseases is also become their obstacle, followed by cost of maintenance (9.95%), wheatear (5.72%), and the rest 15.92% of respondents have no obstacles (Afrianto et al., 2021).

Given that irrigation in Indonesia is commonly accessible, home gardening is primarily concerned about growing medium. Growing medium is the material where the plants are grown and has become one of the most important factors that affect plant growth (Barret, G. E. et al, 2006). Growing medium has four main advantages for plants, namely to serve as a water reservoir for plants, gives nutrients to help the plants grow, provides gases exchange between the plant roots, and to support the anchorage of the plant roots.

Last but not least, the researcher’s company, named Satu Bumi, is also working in the same industry. Satu Bumi produces an organic growing medium that combines the soil that is mixed with Black Soldier Fly (BSF) / kasgot in order to produce a better quality of growing medium for houseplants and we are targeting home gardeners that are still a beginner in doing home gardening. The use of BSF / kasgot has become our main advantage since these insects are well-known for their ability to compose soil with many nutrients inside it.

At the current stage, Satu Bumi is currently still in the process to market the product. However, Satu Bumi understands that it is not enough to utilise the market only by focusing on the final purchase stage. A marketer's goal is to stress on the entire purchase process, because customers go across many stages before making the decision (Basil, G., Etuk, E., & Ebitu, E. T., 2013).

All that said, one of the most essential things is to understand customer purchase decisions towards growing mediums that are indicated as one of the most important parts of gardening.

Understanding buyer behaviour is not easy because several factors can influence customer behaviour before making a purchase decision. Belch (1998) defines ‘the process and activities people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services to satisfy their needs and desires’.

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Having this research will help Satu Bumi, as a new growing medium company, to grow in a more efficient way within a shorter period of time. Therefore, this study aims to provide research insights about the home gardeners purchase decision that covered the most preferred product attributes and customer perceived value. If a marketer is successful in understanding customer behaviour as it applies to the purchase decision process for goods or services, then the marketer may be successful in selling those goods or services. The research insight will potentially be used for Satu Bumi to craft the marketing strategy and to do the right product approach.

2. Literature Review

The literature review will cover journals, books, scholarly articles, and other supporting sources. By having the literature review, the writer will propose a conceptual framework and develop the hypotheses afterwards. The goal of this study is to gain a better understanding of growing medium products, customer preferences, and customer perceived value that will affect the home gardeners purchase decision.

2.1 Growing Medium Product

According to Andrea (2020), growing medium is a form of material which allows plants to form roots and grow at ground level or in a container. Plants' hydration, aeration, and nutrient intake are all controlled by the growing media. Although there are some common principles that apply to all soilless growing media, the concept of an "effective growing medium" is situation dependent. A growing medium must provide a sufficient biological and chemical environment in which plant roots can successfully obtain nutrients, in addition to a suitable physical structure. It must also fulfil the grower's practical and financial needs; in other words, it must be inexpensive, accessible, and manageable (Barret, G. E. et al, 2016).

2.2 Customer Preferences

Studying customer preferences and recognizing potential variability when valuing different products and services, as well as their attributes, can be essential for effectively meeting customers' desires (Parasuraman, A., Zeithaml, V., & Berry, L., 1988). Some factors include product-related (e.g., durability and price), and some are customer-related (e.g., goals, attitudes, discretionary income) (Venkatraman, V., Clithero, J. A., Fitzsimons, G. J., & Huettel, S. A., 2012). When customers have various views and tastes, and their behaviour differs in terms of product buying and use, markets are heterogeneous (Kotler, P., & Keller, K., 2006).

The company can use customer preferences to choose how to package and showcase the brand, which would benefit in the brand development of the company.

2.3 Product Attributes

According to Tjiptono (2008), people made the purchase decision through the consideration of the product characteristics that are called the product attributes. When we are talking about product attributes, it can be divided into two different categories namely intrinsic and extrinsic attributes (Lantos, G. P., 2011).

2.3.1 Growing Medium Product Attributes

These are the attributes that will become the customers’ choices in analysing the product of growing medium before they finally purchase the product. The following attributes are defined through the initial review from the related journals and e-commerce product sold observation.

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Product Quality

Product quality is the value of a product or service that satisfies the customer, enabling the product or service to meet the customer's needs (Novita, M. D., Ujianto, &

Panjaitan, H., 2019).

a. Material Composition

Material composition is defined as any mixture of ingredients that are combined together. The size of the plant, the number of leaves, and the width of the stem each respond throughout the growing media composition (Koesriharti & Istiqomah, A., 2016).

b. Packaging

Packaging is the essential aspect where it heavily affects the customer buying behaviour. Packaging conveys information about the product, including where it was created, when it was made, what it contains, and how to utilise it, among other things (Ahmad, A., Ahmad, N., & Shah, S., 2013).

c. Usage Instruction

Customers consider the quality of the user manual as part of its overall product evaluation. In relation to customer satisfaction, the findings indicate that user manual quality is critical for both low- and high-value products (Börühan, G., Ersoy, P., & Gök, O., 2019).

d. Brand Name

When empirical product quality is hard to ascertain, customers would have to choose more intangible cues such as brand name (Zeithaml, 1988). Customers value brand names because it makes it easier for them to differentiate between different quality levels and purchase more conveniently (Kotler, 2000 P. 408; Fogg, 1998).

e. Price

Price is a relative factor where several portions of customers are sensitive to price but others have low sensitivity towards price in their process of making purchase decisions (Sangadji & Sopiah, 2013). Based on the research done by Faith and Agwu (2014), when it comes to products that are repeatedly purchased or not just a one time purchase products, customers defined pricing as the critical factor towards their purchase decision, including to choose the brand, product, and store to favour.

2.4 Customer Perceived Value

Customer perceived value, according to Zeithaml (1988), is the customer's overall evaluation of the value of a product refers to the assessment of what is received and what is given. The general view of the perceived value is that about the connection of the customer and the product (Holbrook, M. B., 1996) which also connected to the benefits obtained as the return for the effort that the customer gave (Zeithaml, V. A., 1988). According to the research done by the researchers (Aulia et al., 2016), the customer perceived value is examined into three dimensions which are product-related value, social-related value, and personal-related value.

According to Aulia et al., (2016), who has previously measuring the perceived value for durable goods, these three value dimensions of customer perceived value managed to meet the customer’s expectations.

2.4.1 Product-Related Value

There are various product attributes that would affect the product-related value, but as what the researcher stated in the previous section, the product attributes are divided into extrinsic and intrinsic attributes, but still need to separate the attributes that are not considered to affect the product function such as the packaging design and brand name. From this standpoint, the

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customer commonly perceives the product's experience to be part of their important need when utilising the product.

2.4.2 Social-Related Value

Social-related value corresponds to the perceptions of customers that society is the source of value in this category. Customers consider society as a space where they can acquire particular advantages by social interaction, as determined by the source (Aulia et al., 2016). These advantages can be evaluated from two basic needs perceptions: the need for acceptance and the need for a compliment. Fishbein and Ajzen (1975) has explained the theory of reasoned action where the expectation of their close relatives (e.g. family or friends) is considered as the behaviour tendency of the customers.

2.4.3 Personal-Related Value

The value of a product is influenced by each customer's personal value; it's different from one to another (Herrmann, A., Huber, F., & Morgan, R. E., 2001). The example can be shown from the tendency of a person who is having a healthy lifestyle. This dimension is connected to how the product can meet people’s goals, principles, philosophy, or any other that could give them more value (Khalifa, A. S., 2004).

2.5 Purchase Decision

A customer's purchasing decision is the result of a series of choices the customers make before making a purchase, which begins when they are willing to meet a need (Hanaysha, J. R., 2018).

The customer must make a decision about where to buy, what brand to buy, what model to buy, how much to buy, when to buy, how much money to spend, and how to pay. Furthermore, numerous customers' judgments are most likely to be influenced by a combination of previous purchase history, marketing programs, and non-commercial information sources (Schiffman, L. G., & Kanuk, L. L., 2007).

3. Research Method

3.1 Research Design

The objective of this research is to investigate and evaluate the factors that influence customer purchase decisions of growing medium for home gardeners.

Figure 1: Research Design

This study's research design is depicted in Figure 4.1. This study's research design begins with the identification of a problem and ends with conclusions and recommendations.

3.2 Research Approach

The researcher used a quantitative approach through online questionnaires to measure and analyse the data. The objective of the quantitative approach is to find out the customer

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preferences by analysing product attributes and customer perceived value that influence customers purchase decision. This applied research aims to define and analyse the product attributes and customer perceived value factors that could affect purchase decisions of growing medium, so the researcher would like to give the marketing and product strategies for growing medium businesses. In this quantitative research, the researcher used questionnaires through online surveys. The questionnaire method provides a means for obtaining statistical data about a given set of attributes, data, behaviours, or attitudes using a comprehensive set of questions (Preston, 2020).

3.3 Data Collection

The researcher will use Google Form to generate the online questionnaires. Questionnaire will become the main resource data to be analysed in this research consisting of 5 sections inside it.

The target population of this research is the respondents between 17 to 56 years old, which are the group of age that are doing the gardening the most based on the survey by National Gardening Survey in 2018. The target respondents are those domiciled in Jabodetabek and Bandung, and have purchased growing medium products. Referring to Malhotra et al. (2016), the researcher used a non-probability technique with the judgmental/purposive sampling based on the characteristics mentioned in previous section. Since this research goal is to determine the factors that affect purchase decisions on growing medium purchase, the researcher believes that the best sample is the sample that comes from those who have ordered at least one growing medium and focusing on those who used it for house plants.

4. Results and Discussion

The purpose of this research is to find out the customer preferences and factors influence purchase decisions towards sleeping products in Generation Z. The hypotheses in the conceptual framework were built from 6 variables which are product-related value, social- related value, personal-related value, sales promotion, social media marketing, and purchase decision. The research findings will be explained one by one. This research has the objective to find out the product attributes and the influence of customer perceived value towards the purchase decision of growing mediums for home gardeners. The researcher built the conceptual framework with 9 variables which are the product quality, material composition, packaging, usage instruction, brand name, price, product-related value, social-related value, and personal- related value. The researcher will explain it one by one below:

4.1 Product Attributes 4.1.1 Product Quality

First is about the product quality attribute that showed a positive correlation towards the purchase decision. Therefore, this hypothesis is accepted in this research. Not only positively correlated, but product quality of the growing medium also shows a significant influence and indicated as the most crucial that have the highest significance effect. This result is aligned with the previous research done by Aprianti et al., (2015) that showed in her research that product quality is the influential factor in purchase decision for biological fertiliser, which is related to plant growth. Customers want the additional composition for growing mediums aside from only the main composition. From the analysis the researcher also concluded that the growing medium that could prove a long-term impact for the plant would be more recommended for customers to purchase because planting a plant does not only stop until the gardeners see the growth of their plant, but also to ensure that their plants can grow last-long and have a good condition.

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4.1.2 Packaging

Still within the intrinsic attributes, packaging showed as a product attribute that has a positive correlation towards the purchase decision. Not only positively correlated, but packaging of the growing medium also shows a significant influence. The result of its positive correlation towards the purchase decision is aligned with the previous study by Denny, L. (2018) which obtained that packaging influences the product selections, but it does not align with the study by Showrav et al., (2018) that stated if packaging is the most crucial determinant factor in purchase decision because product quality in growing mediums beats it. The ease of product usage, information, and the packaging variation does matter and it’s aligned with the research analysis of other product attributes which is usage instruction that will be explained in the next section. This can be caused because most of the home gardeners are using the growing mediums in a smaller gardening scale compared with the commercial gardeners, hereby having variative packaging for its pack size for example would affect the customer purchase decision.

4.1.3 Material Composition

Material composition showed a positive correlation towards the purchase decision. Therefore, this hypothesis is accepted in this research. Although it’s positively correlated, the material composition influence towards purchase decisions is not significant for the customers. Back to the main problem of home gardeners that faced difficulties in choosing the right growing mediums for their plants, supported by the previous research by Aprianti et al., (2015) who stated that different types of plants have different needs of material composition in the products.

Hereby the customer will find out the material composition information when they purchase growing medium products to make sure that it could be suitable for all plants. Moreover, consumer preferences are shifting in favour of sustainable production features including using materials from the right supplier. (Behe et al., 2013) and biodegradable containers (Hall et al., 2010; Nambuthiri et al., 2015).

4.1.4 Usage Instruction

Usage Instruction showed a positive correlation towards the purchase decision. Therefore, this hypothesis is accepted in this research. Not only positively correlated, but usage instruction of the growing medium also shows a significant influence. The early home gardener's problem was to identify how-to-use the growing medium product, so the home gardeners preferred to choose a growing medium that had an easy to swallow usage instruction, dosage form, and usage time information. The result done by Balijon et al., (2002) stated that the purchase decisions of the customer were affected by their prior experiences with the usage instruction.

Once a product has a good usage instruction, the possibility that will happen is that the repeat purchase from the customer.

4.1.5 Price

Price showed a positive correlation towards the purchase decision. Therefore, this hypothesis is accepted in this research. However, although it’s positively correlated, the price influence towards purchase decision is not significant for the customers. This can be caused by the different price sensitivity among the customers, as per the research done by Sangadji & Sopiah (2013) which shows that price is a relative factor. Moreover, following the demographic profile of the average customer spent for growing mediums, it can be seen that growing medium have relatively low price and does not have a huge gap between one brand and another, that’s why the customer thought that price does affect but in case of the growing medium product, price is not the most significant factor.

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4.2 Customer Perceived Value 4.2.1 Product-Related Value

Product-Related value showed a positive correlation towards the purchase decision. Therefore, this hypothesis is accepted in this research. Not only positively correlated, but product-related value of the growing medium also shows a significant influence. Product quality has become the main actor for the customer through the evaluation of its function after the product usage, aligned with the previous research by Aulia et al. (2016). Great composition is a part that is most considered by the customer related to the product value. Interesting point that was considered as well is the quality consistency by the growing medium. It can be aligned with the attribute of product quality where the customer considers a product that has a long term impact for their plants.

4.2.2 Social-Related Value

Social-Related value showed a positive correlation towards the purchase decision. Therefore, this hypothesis is accepted in this research. Not only positively correlated, but the social-related value of the growing medium also shows a significant influence. The favourable opinion that can be obtained from others when the product is acquired can be used to determine the product's value (Aulia et al., 2016). This is aligned with the past paper by Gan, C., & Wang, W. (2017) that the impact of social value on purchase intention is significant and valuable, and the Attiq et al., (2014) about the crucial result of social-related value towards the purchase decision.

When the growing medium is being used the most by their relatives or neighbours, have a good reputation around their environment, and can make their plants considered as good plants by others, the customers will more preferred to purchase the growing mediums product.

4.2.3 Personal-Related Value

Personal-Related value showed a negative and insignificant correlation towards the purchase decision. Therefore, this hypothesis is rejected in this research. The result is not aligned with the research by Woodruff (1997) who shows that personal values play a central role in product acquisition. Majority of the customer does not agree that self-confidence and personal principles would affect their decision to make a purchase for a growing medium product.

5. Conclusion

Based on the PLS-SEM analysis, there are 3 out of 6 product attributes that are positively influencing the purchase decision, which are product quality, packaging, and usage instruction.

Meanwhile, the brand name, material composition, and price did not influence the purchase decision of growing mediums. For product quality, the researcher can conclude that the customers are concerned about the additional composition inside the product that later can help their plants have better long-term impact. The product function of growing mediums significantly impacts the purchase decision. Packaging interestingly has a significant impact as well based on the research findings. Customers think that the growing medium packaging should be able to ease the product usage and include clear informative & useful information on its packaging, and to have more variation on the packaging because most of the respondents are home gardeners that are looking for smaller pack sizes of the growing mediums. The home gardeners usually do it for hobby, not the commercial one, that’s why the number of their gardening area is also mostly smaller. Moving on to the extrinsic product attributes, the usage instruction becomes one of the attributes that positively influence purchase decisions. As the home gardeners still need to digest the way to use the growing medium products, they need the easy-to-swallow usage instructions, the usage dosage form, and the clear usage time information. It can be seen that the customers want the brands to give them the right direction

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so the possibility of them failing when applying the product is lower. The result done by Balijon et al., (2002) stated that the purchase decision of the customer was affected by their prior experiences with the usage instruction. Once a product has a good usage instruction, the possibility that will happen is that the repeat purchase from the customer.

Based on the PLS-SEM analysis, the customer perceived values that are positively influencing the purchase decision are product-related value and social-related value. Moreover, all of those customer perceived values are significantly influenced based on the p-analysis. Product-related value has become the most important perceived value for the customer purchase decision with several concerns such as it should be good for the plant growth, have a great composition, multifunction for all types of plants, have a reasonable price, and have a consistent quality. All these product functions are aligned with the previous question which is the product quality attributes. It can be defined that any things that are related to its product function are still considered as the most important factors that are influencing the purchase decision of growing medium products. Second perceived value is social-related value that also positively and significantly influences the purchase decision of growing medium products. The respondents agreed that the growing mediums they buy should be the one that is also being used the most by their neighbours or relatives because it gives them more trust towards the product. Also, the growing medium that they use has to be the one that leaves a good impression around them.

Last but not least, the growing medium also should be considered as good by other people.

From these findings the researchers can see that the social environment also affects the way customers perceive their product as the good one or not.

According to the data analysis about the product attributes preferences and customer perceived values towards growing mediums, there are several recommendations that can be suggested for Satu Bumi and other growing medium brands

5.1 Business Recommendation

Considering the product attributes preferences, Satu Bumi can put more consideration with its product quality, packaging, material composition, usage instruction, and price. Meanwhile, the brand name is not considered as influencing customer purchase decisions, so Satu Bumi could focus on improving the product and marketing strategies with the recommendation as follows:

a. Conducting more product development to test the product quality to the target market because the customers are considering having growing mediums that have more benefits derived from additional composition besides only its main composition. Thus, adding special nutritioning ingredients can be the options. Currently, Satu Bumi already adds the BSF leftovers inside its product, so this can be developed to find out more functions. Because the customer is also considering the growing mediums that can make their plants have a long-lasting growth. Through the analysis we can also see that having an additional composition representing the majority of the customers preferences, so Satu Bumi can explore other extra compositions besides BSF.

b. Designing a packaging that could ease the product usage, both to ease when the customer uses it or when they store it. This can be achieved for example by designing a packaging that has a spout on its packaging, making it pouch-shape, bottle-shape, and other possible options that can be explored. Moreover, Satu Bumi and other growing medium brands could add more informative description on its packaging and to have more variation on its pack size options that makes the customer choose the one that suits their gardening scale.

c. In terms of the material composition, Satu Bumi already had environmentally friendly materials that were already suited with customer preferences. Therefore, Satu Bumi

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needs to keep this value. Another suggestion is to provide more options of growing medium that is flexible and suitable for many types of plants. Quality control should play a main role because the customers are looking for high-quality ingredients and consistent quality.

d. Currently, Satu Bumi has not put any usage instructions inside its product. Hereby, it’s suggested that Satu Bumi and other growing medium brands can attach the usage instructions on its packaging that consist of what the customers are looking for with the most important information which is the dosage form. Other complementary information such as the usage time information also would be helpful but should be crafted in easy to swallow usage instructions.

e. The perceived value of the products can be optimised by focusing on the product quality control to ensure the consistency of the quality. The quality consistency affects how the customer perceives its growing medium quality.

f. Optimising word of mouth marketing to increase social-related value of growing medium by Satu Bumi because the customers relies also on what the people around them are using and which brand has a good reputation. The marketing strategy that can be used as well is testimonial marketing from the trusted home gardeners to utilise the trust that the customer put on them.

5.2 Future Research

The limitation of this study is the population number of the respondents that have purchased growing mediums from Infarm that is hard to be found. Hereby, the author was only referred to the sampling by Malhotra’s paper to determine the number of minimum respondents for this questionnaire. Another limitation is the very minimum paper to almost zero paper on the growing medium industry. Being a new idea recently, just a small proportion of people's results showed knowledge of this topic. As a result, the author has cited research on e-commerce and social media that have a similar purpose to the growing mediums industry market throughout the literature reviews and analysis. Subsequent-wise, this research is still limited to Jabodetabek and Bandung area, future research can target broader areas to cover stronger insights. Future research can also benchmark on more growing mediums brands. According to the findings of the current study, this study could well be reiterated in the future to examine purchase decisions when buying sleeping products and determine whether the findings have changed. Lastly, there are still many possibilities to expand the variables that still affect consumers’ purchase decisions other than through product attributes and perceived value.

Future research can look at other potential influential factors in purchase decisions.

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