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Original Research

THE FACTORS AFFECTING BUYING DECISIONS OF ENGINEERED WOOD IN EAST JAVA

RR DYAH EKO SETYOWATI 1, ANTONIUS YANI ANTARIKSA 2, and SRI KARTIKASARI 3.

Vol 17, No 07 ( 2022 )   |  DOI: 10.5281/zenodo.6911695   |   Author Affiliation: Indonesian Business School 1,2,3.   |   Licensing: CC 4.0   |   Pg no: 915-934   |   To cite: RR DYAH EKO SETYOWATI, et al., (2022). THE FACTORS AFFECTING BUYING DECISIONS OF ENGINEERED WOOD IN EAST JAVA. 17(07), 915–934. https://doi.org/10.5281/zenodo.6911695   |   Published on: 21-07-2022

Abstract

The gap between wood supply and demand in East Java will only widen due to population growth in the area. This gap has urged furniture industries to start utilizing waste as raw material for engineered wood to replace natural wood. Therefore, it is highly important to conduct in-depth market studies from the market perspective of the consumers (a combination of business consumers and end consumers) to understand the business prospect of engineered wood. Thus, observing which factors affecting the decisions of buyers (including cultural, social, personal, psychological, and marketing mix) to purchase products and the decisions of producers (including economic climate, political environment, corporate culture, physical climate, technology, personal climate, personal factors, interpersonal factors, and location) to produce products will enable the study to find empirical patterns to develop strategies. This study discovers that: 1) fourteen variables have an effect on buying decisions; 2) the factors of the consumers resulting from the simultaneous reduction of several variables significantly affect buying decisions; and 3) the factors of the consumers resulting from partial (individual) reduction of several variables significantly affect buying decision


Keywords

Processed timber, buying decision, East Java.