The Effect of Advertising and Sales Promotion Decisions
for Purchases of Samsung Smartphone Products in the
City of Lhokseumawe
T. Edyansyah
1
, Nasir Azis
2
, Rusydi Abubakar
1
and Adnan Khairina
1
1
Faculty of Economics and Business, Universitas Malikussaleh, Aceh, Indonesia
2
Faculty of Economics and Business, Universitas Syiah Kuala, Banda Aceh, Indonesia
Abstract. The purpose of this study was to determine the effect of advertising
and sales promotion on purchasing decisions of Samsung Smartphone products
in Lhokseumawe. The population in this study is consumer who buys Samsung
Smartphone products. Data collection techniques used were questionnaires, field
research and literature studies. Data analysis method used is multiple linear
regressions. The author distributes questionnaires to 100 consumers who buy
Samsung Smartphone products in Lhokseumawe. From the partial test results
(t test), advertising variables (X1) significantly influence the purchase decision.
For the variable sales promotion (X2) significantly influence the purchase
decision. For simultaneous testing, the independent variables consisting of
advertising (X1) and sales promotion (X2) significantly influence the purchase
decision variable (Y) of Samsung smartphone products in Lhokseumawe.
Keywords: Advertising · Sales promotion · Purchasing decisions
1 Introduction
Cellular phones are developments of landline phones that can be carried anywhere; it
can help human activities not only to call but also can send text, browsing on internet,
listen to music, and even capture and take the photos of human activities with camera.
The longer the mindset of consumers will always change according to the times. The
phenomenon that occurs at this time is that Samsung Smartphone products are faster in
terms of modernizing their latest type and series, therefore intense promotion is needed
for consumers that consumers become aware of the latest Samsung Smartphone
products. In other hand, the customers cannot understand quickly the release of the
latest types or series of Samsung Smartphone products due to less proactive to find out
about Samsung Smartphone products promotion in Lhokseumawe.
Smartphone companies that operate their products in Indonesia consist of various
brands such as Nokia, Samsung, Sony Ericsson and others, they are competing to
introduce each other's products with the right promotion and trying to attract the
attention of consumers. One of the smartphone brands in Indonesia is Samsung.
Samsung smartphone is one of the international smartphone brands manufactured in
Japan.
Edyansyah, T., Azis, N., Abubakar, R. and Khairina, A.
The Effect of Advertising and Sales Promotion Decisions for Purchases of Samsung Smartphone Products in the City of Lhokseumawe.
DOI: 10.5220/0010523900002900
In Proceedings of the 20th Malaysia Indonesia International Conference on Economics, Management and Accounting (MIICEMA 2019), pages 611-618
ISBN: 978-989-758-582-1; ISSN: 2655-9064
Copyright
c
 2022 by SCITEPRESS – Science and Technology Publications, Lda. All rights reserved
611

Promotional activities carried out by the Samsung Smartphone Company are a
means for companies to inform their products, especially new products to the public,
so that their products can be recognized by the public at large and embedded in the
minds of consumers who will then be interested and persuaded to make a purchase.
Samsung smartphones are quite popular in the market because they are considered
capable of providing economic value to their customers, with a nominal price that is
relatively cheap, but there are already features that should be owned by brands that are
quite expensive for companies other than Samsung, as a simple example, the features
available in Samsung smartphones include cameras, video players, mp3s and radios.
When compared to a number of other brands, smartphone brands that have features like
that can be much more expensive, therefore the Samsung brand is quite an idol for many
people.
Based on the above research background, the problem can be formulated, namely
(1). How does advertising and sales promotion influence the purchasing decision of
Samsung Smartphone products in Lhokseumawe City? (2). Which factor has the
dominant influence between advertising and sales promotion on the decision to
purchase Samsung Smartphone products in Lhokseumawe City?
2 Literature Review
2.1 Definition of Promotional Mix
According to Kotler and Armstrong (2008), the promotion mix is a specific mix of
advertising, sales promotion, public relations, personal selling and direct marketing
tools that companies use to communicate persuasive consumer value and build
customer relationships.
Direct marketing: Direct relationships with individual consumers who are carefully
targeted to get an immediate response and build lasting customer relationships. This
promotional mix is used to communicate the company's activities to consumers.
Effective communication will change the behavior of consumers and will strengthen
the behavior that has been changed before.
2.2 Definition of Advertising
Advertising is all forms of paid non-personal presentation and promotion of ideas,
goods, or services with certain sponsors (Kotler and Armstrong, 2008). As revealed by
Shimp (2008) Advertising is paid communication, which is used to develop attitudes,
create awareness and send information to get responses from target markets.
According to Saladin (2003), interpreting advertising is all forms of non-personal
presentation and promotion of ideas, promotion of goods or services paid by sponsors.
Meanwhile according to Kasali (2007) defines print media advertising as a static media
and prioritizing visual messages.
The purpose of advertising according to Kotler and Armstrong (2008) is a specific
communication task that is achieved with a specific target market over a certain period
of time. The purpose of advertising is classified based on the main purpose of
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informing, persuading, or reminding. Informative advertising is used when introducing
new product categories, the purpose of which is to build new demand. Reminder
advertising helps maintain customer relationships and keeps consumers thinking about
products. The purpose of advertising is to move consumers through the stage of buyer
readiness, there are six stages in which consumers will be driven.
To reach the target audience according to Sambriana (2005), advertisers will use
various types of media, both print and electronic media. The most commonly used
advertising media are television, cinema, radio, newspapers, magazines, outdoor
advertisements and other options such as the internet, various commercial screens
installed on the highway and so on.
2.3 Definition of Sales Promotion
Sales promotion is a short-term incentive to encourage the purchase or sale of a product
or service. Advertising offers a reason to buy a product or service, while a sales
promotion offers a reason to buy the product or service now. (Kotler and Armstrong,
2008). According to Lupiyoadi (2006), sales promotions are all activities intended to
increase the flow of goods or services from producers to final sales. Sales promotion
can help achieve a number of targets, including encouraging new product trials, can
increase supplementary purchases, can help build customer loyalty by determining
brand buying patterns on a regular basis and can motivate distributors and salespeople.
The main sales promotion tools according to Kotler and Armstrong (2008) include
product samples (a number of products to try), coupons (certificates that provide
savings to buyers when they buy certain products), cash returns (price reduction occurs
after purchase), special prices (called also a reduction in prices, offering official product
price savings to consumers), premiums (goods offered for free or at low prices as an
incentive to buy products, ranging from toys that are inserted into children's products),
special goods advertisements (also called products promotion, in the form of useful
accessories printed with the advertiser's name, symbol or message given as gifts to
consumers including pens, cups, calendars and so on), support awards (cash awards or
other awards given to regular users of products or services specific company),
promotion of point of purchase and sweepstakes and games (opportunity win something
like cash, travel, or goods, through luck or a business).
2.4 Definition of Buying Decision
According to Stanton (2005), purchasing decisions are a series of decisions taken by
consumers to buy to see brands, prices, colors and so on. Meanwhile, according to
Kotter (2005), providing a definition of a purchase decision is a decision taken
regarding the certainty of whether to buy or not.
The purchase decision is the consumer's decision to buy a product after previously
thinking about the appropriateness of buying the product by considering the
information he knows about the reality of the product after he witnessed it. The results
of that thinking are influenced by the strength of the consumer's will to buy as an
alternative to the purchase decision term proposed by Setiadi (2010).
The Effect of Advertising and Sales Promotion Decisions for Purchases of Samsung Smartphone Products in the City of Lhokseumawe
613

Purchasing decisions are a reason about how consumers make choices about the
purchase of a product that suits their needs, desires and expectations, so that it can lead
to satisfaction or dissatisfaction with the product that is influenced by several factors
including family, price, experience and product quality (Mowen and Minor, 2008: 18).
According to Schiffman and Kanuk (2009) defining a purchasing decision is a decision
as the choice of an action of two or more alternative choices. In other words in order
for someone to make a decision there must be an alternative choice available.
3 Research Methods
This research was conducted in Lhokseumawe with the object of the research being
consumers who bought Samsung Smartphone products. The population who bought
Samsung Smartphone products with a total of 15461 Samsung Smartphone consumers
as the population data in this study; (Source: Cellphone Shops in Lhokseumawe City,
2016). Based on the calculation of the Slovin formula, the number of samples obtained
for this research is 100 samples with data collection technique is questionnaire, field
research and literature study.
3.1 Operational Definition of Variables
1. Advertising (X1) is all forms of paid personal non-presentation and promotion of
ideas, goods, or services with certain sponsors.
2. Sales promotion (X2) is a short-term incentive to encourage the purchase or sale of
a product or service.
3. Purchasing decision (Y) is to buy the most preferred brand from various
alternatives.
3.2 Data Analysis Techniques
This analysis is to predict the value of the dependent variable if the value of the
independent variable increases or decreases and to determine the direction of the
relationship between the independent variable and the dependent variable whether each
independent variable is positively or negatively related. To test the hypothesis of the
influence of the promotion mix on purchasing decisions (Y). The formulas used in this
study is:
Y = a + b
1
X
1
+ b
2
X
2
+ e
Description
Y = Buying Desicion
X
1
= Advertising
X
2
= Selling Promotion
a = Constant
b
1,
b
2
= Regression Coefficient
e = Error term
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3.3 Test of Hypothesis
1. Partial Test (t test)
a. If tcount > ttable, then advertising (X1) and sales promotion (X2) partially have
a significant effect on purchasing decisions (Y).
b. If the value of tcount <ttable, then advertising (X1) and sales promotion (X2)
partially have no effect on purchasing decisions (Y).
2. Simultan Test (F test)
a. If Fcount > Ftable, then advertising (X1) and sales promotion (X2)
simultaneously influence the purchase decision (Y).
b. If Fcount < Ftable, then advertising (X1) and sales promotion (X2)
simultaneously have no effect on purchasing decisions (Y).
4 Results and Discussion
4.1 Validity Test
The following is a comparison of the calculated value with r table can be seen in the
table as follows:
Table 1. Result of Validity Test.
No Variable r
count
r
table
1 Advertising (X
1
)
0,1975
X.
1.1. 0,868
X.
1.2.
0,842
X.
1.3.
0,859
2 Selling Promotion (X
2
)
0,1975
X.
2.1.
0,845
X.
2.2.
0,792
X.
2.3.
0,785
X.
2.4.
0,808
X.
2.5.
0,735
3 Selling Decicion (Y)
0,1975
Y
1.
0,743
Y
2.
0,854
Y
3.
0,735
Y
4.
0,780
Y
5.
0,854
4.2 Reliability Test
The following is the Cronbach Alpha (α) value with the help of SPSS can be seen in
the table as follows:
The Effect of Advertising and Sales Promotion Decisions for Purchases of Samsung Smartphone Products in the City of Lhokseumawe
615

Table 2. Reliability of Research Variables.
No Variabel Value (α)
Number
Question
Description
1 Advertising (X
1
) 0,703
3 Reliable
2 Selling Promotion (X
2
) 0,724
5 Reliable
3 Buying Decicion (Y) 0,728
5 Reliable
From this table it can be explained that the measurement of the Cronbach Alpha
value of the research variables fulfills the assumptions and can be said to be reliable
because it provides a Cronbach Alpha value > 0.60.
4.3 Analysis of Coefficients Multiple Regresion
Table 3. Result Analysis of Coefficients Multiple Regresion.
Coefficients
a
Model
Unstandardized
Coefficients
Standardized
Coefficients
T Sig. B
Std.
Error Beta
1 (Constant)
1.727 .249 6.939 .000
Advertising .255 .078 .208 2.990 .000
Selling Promotion .426 .088 .506 4.835 .000
a. Dependent Variable: Buying Decicion
The results of multiple linear regression analysis can be seen as follows:
Y = 1,727 + 0,255X
1
+ 0,426X
2
+ e
The following are the results of calculations on the independent variables of this
study:
1. At the coefficient value of the advertising variable (X1) has a value of 0.255 which
means that if the advertising variable increases by one percent, there will be an
increase in purchasing decisions (Y) of 0.255.
2. The coefficient on the sales promotion variable (X2) has a value of 0.426, which
means that if the sales promotion variable increases by one percent, there will be an
increase in purchasing decisions (Y) of 0.426.
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4.4 The Value of Correlation Coefficients and Determination
Coefficients
Model Summary
b
Model R R Square
Adjusted R
Square
Std. Error of the
Estimate
1 .668
a
.446 .435 .38506
a. Predicto
r
s: (Constant), Selling Promotion, Advertising
b. Dependent Variable: Buying Decicion
From the results of this study it can be seen that the coefficient value R (correlation) is
obtained for 0.668, which means that the relationship between advertising (X1) and
sales promotion (X2) to the purchase decision (Y) has a relationship of 66.8%. From
the test, it is obtained the Adjusted R2 value of 0.435, which means that the influence
of advertising (X1) and sales promotion (X2) on purchasing decisions (Y) of 0.435 or
(43.5%). While the remaining 0.565 or (56.5%) is influenced by other factors outside
the research model (error term).
4.5 Test of Hypothesis
1. Partial Test (t test)
a. For the advertising variable (X1), the value of tcount is 2.990> 1.984, where the
advertising variable (X1) has a significant effect on the purchase decision
variable (Y).
b. For the sales promotion variable (X2), the value of tcount is 4,835> t table 1,984,
where the sales promotion variable (X2) significantly influences the purchase
decision variable (Y).
2. Simultan Test (F test)
From the results of SPSS data processing, a Fcount value of 39.043 was obtained. Then
the value of Fcount 39.043> Ftable 3.09, meaning that simultaneously or
simultaneously the independent variable consisting of advertising (X1) and sales
promotion (X2) has a significant effect on purchasing decisions (Y), with a significance
level of 0,000.
5 Conclusion
1. The advertising variable (X1) influences the purchase decision variable (Y).
2. Sales promotion variable (X2) influences the purchase decision variable (Y).
3. For simultaneous testing, the independent variables consisting of advertising (X1)
and sales promotion (X2) have a significant effect on purchasing decisions (Y).
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617

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