THE ROLE OF PRICE IN MEDIATING THE EFFECTS OF SERVICE QUALITY AND PROMOTION ON PURCHASING DECISIONS AT TEH EVI RESTAURANT IN RENGAT 2025

Abstract

This study aims to analyze the role of price in mediating the effects of service quality and promotion on purchasing decisions at Teh Evi Restaurant in Rengat in 2025. The increasingly competitive culinary industry requires food-service businesses to optimize their marketing strategies through superior service quality, effective promotional activities, and affordable and competitive pricing to stimulate consumer purchasing decisions. This study employed an associative quantitative approach. The sample consisted of 100 consumers selected using purposive sampling. Data were collected through structured five-point Likert-scale questionnaires and analyzed using path analysis with the assistance of SPSS, along with the Sobel test to examine the mediation effects. The results showed that: (1) service quality has a positive and significant effect on price perception; (2) promotion has a positive and significant effect on price perception; (3) service quality has a positive and significant direct effect on purchasing decisions; (4) promotion has a positive and significant direct effect on purchasing decisions; (5) price has a positive and significant effect on purchasing decisions; (6) price significantly mediates the effect of service quality on purchasing decisions; and (7) price significantly mediates the effect of promotion on purchasing decisions. These findings indicate that price affordability and congruence serve as strategic intervening factors that strengthen the positive effects of service quality and promotional activities on consumers’ purchasing decisions at Teh Evi Restaurant in Rengat.