RJOAS February 2025
by
Pravitasari Nila Rully, Master’s Study Program of Agribusiness, Faculty of Animal Husbandry and Agriculture, University of Diponegoro, Semarang, Indonesia
Setiadi Agus, Legowo Anang M., Department of Agriculture, Faculty of Animal Husbandry and Agriculture, University of Diponegoro, Semarang, Indonesia
iPanganandotcom is a pioneering e-commerce platform specializing in digital food marketing in Indonesia, established through a collaboration between Store Send Indonesia (SSI) and Perum Bulog. This study aims to analyze both the simultaneous and partial effects of product, price, distribution, and promotion on consumer satisfaction at iPanganandotcom, with online purchase decisions as a mediating variable. The results indicate that the variables Product (X1), Price (X2), Distribution (X3), Promotion (X4), Online Purchase Decision (Z), and Consumer Satisfaction (Y) are all categorized as high at iPanganandotcom Semarang. The Outer Model analysis confirms that each research variable meets validity and reliability standards, with a loading factor exceeding 0.7 and AVE values above 0.5. The R-square value of 0.886 suggests that 88.6% of consumer satisfaction is influenced by online purchase decisions, mediated by product, price, distribution, and promotion.
The rapid expansion of internet penetration in Indonesia has been evident over the past several years, particularly since the COVID-19 pandemic that emerged in late 2019 to early 2020. During this period, the internet became an integral part of daily activities, playing a crucial role in fulfilling public information needs and facilitating economic transactions. According to a survey conducted by the Indonesian Internet Service Providers Association (APJII), the number of internet users in Indonesia reached 215.63 million in 2022-2023, reflecting a 2.67% increase compared to 210.03 million users in the previous period. This figure accounts for 78.19% of Indonesia’s total population, which stands at 275.77 million people. Notably, this penetration rate has shown consistent growth, rising from 64.8% in 2018 to 73.7% in the 2019-2020 period, and continuing its upward trajectory in subsequent years.
In the current digital transformation era, characterized by Industry 4.0 and Society 5.0, global markets are increasingly shaped by VUCA (Volatility, Uncertainty, Complexity, and Ambiguity) conditions. This shift has drastically altered consumer purchasing behaviors, particularly in the e-commerce sector. A significant rise in online shopping trends has been observed, driven by the increasing internet user base and the pandemic-induced mobility restrictions. Reports indicate that the number of e-commerce consumers in Indonesia surged from 17 million in 2020 to 32 million in 2021, marking an 88% increase. Furthermore, according to a DataIndonesia.id survey, 37.7% of respondents reported an increase in their online shopping frequency, while 43.2% maintained their previous shopping habits.
As consumers adapt to digital environments, their shopping preferences have shifted towards online platforms, which offer greater convenience, affordability, and efficiency. This shift has forced traditional brick-and-mortar businesses to adopt digital business models to maintain competitiveness. Consequently, e-commerce has become the dominant channel for consumer transactions, enabling shoppers to compare products, evaluate prices, and make purchases effortlessly, without facing obstacles such as traffic congestion or unfavorable weather conditions.
Indonesia, recognized as the largest e-commerce market in Southeast Asia, continues to exhibit strong potential in the digital economy. Projections estimate that the number of e-commerce users will reach 212.3 million by 2023, further intensifying competition among local and international players. This heightened competition has compelled businesses to implement effective marketing strategies, particularly through the marketing mix approach. The 7P marketing mix framework – consisting of Product, Price, Place, Promotion, People, Process, and Physical Evidence – plays a crucial role in attracting and retaining customers in digital marketplaces.
Among Indonesia’s leading food e-commerce platforms, iPanganandotcom has successfully integrated digital innovations to meet consumer demands. By leveraging an extensive network of food warehouses, the company ensures efficient product availability and delivery through its Hyperlocal Connection Concept and ODIN (Order Delivery & Inventory Network) system. These strategies enhance the online shopping experience by providing fast delivery, guaranteed stock availability, and 24/7 service. Through such innovations, iPanganandotcom has effectively navigated VUCA conditions and strengthened its competitive advantage in the Industry 4.0 and Society 5.0 landscape.
This study presents a novel approach compared to previous research on the marketing mix and consumer satisfaction. Unlike prior studies that primarily focused on product and price factors, this research incorporates distribution and promotion variables while also analyzing online purchase decisions as a mediating factor. The key research contribution lies in its examination of how the 4P marketing mix (Product, Price, Place, and Promotion) at iPanganandotcom Semarang influences consumer satisfaction, with online purchase decisions acting as an intermediary variable.
According to Tjoe et al. (2022), a product encompasses everything that a manufacturer offers to the market, which can be considered, requested, sought, purchased, used, or consumed by consumers. A product consists of both tangible and intangible attributes, including elements such as color, price, brand reputation, and services provided by manufacturers and retailers. These attributes collectively determine the product’s ability to fulfill consumer needs and desires.
Based on these definitions, it is evident that a product is a vital component of a business, as it serves as the medium of exchange between companies and consumers. Products can be classified into various levels and categories, each with specific components and quality standards that directly influence customer satisfaction.
According to Kotler and Armstrong (2008) in Hasnidar et al. (2021), price refers to the amount of money consumers must pay to acquire a product or service. Price acts as a key determinant in purchasing decisions, as consumers compare different price points to maximize value based on their purchasing power.
The role of pricing is multifaceted. It serves as a tool for consumers to allocate their budgets efficiently, allowing them to choose products or services that provide the highest perceived benefits. According to Saladin (2006) in Hasnidar et al. (2021), pricing strategies are formulated based on specific objectives, including market survival, profit maximization, revenue optimization, and competitive positioning. Furthermore, Kotler and Armstrong (2008) outline several price adjustment strategies, including discount pricing, segmented pricing, psychological pricing, promotional pricing, geographic pricing, and international pricing.
Several key indicators define a product’s price effectiveness, including affordability, compatibility with quality, competitiveness, perceived benefits, and overall impact on purchasing behavior.
According to Saleh et al. (2019), place refers to the location, distribution channels, number of intermediaries, and conditions of distributors involved in making a product available to consumers. A distribution channel is an interdependent network of organizations that facilitates the movement of goods or services from producers to end consumers (Alimin et al., 2022).
The key aspects define a distribution strategy (Alimin et al., 2022):
- Transportation system – Ensuring efficient logistics and delivery;
- Storage system – Managing inventory to meet demand;
- Channel selection – Determining the most effective path to reach customers.
The effectiveness of a distribution strategy is assessed through indicators such as product availability, order processing efficiency, delivery speed, and accessibility.
Promotion refers to marketing activities that communicate product benefits and persuade target consumers to make a purchase (Panuju, 2019). Effective promotional strategies not only drive sales and customer engagement but also help businesses establish brand recognition and loyalty.
According to Kotler and Armstrong (2008) in Arman (2022), promotion serves several objectives:
- Encouraging short-term sales while fostering long-term customer relationships;
- Motivating retailers to support new product introductions;
- Increasing brand awareness through advertising, personal selling, public relations, direct marketing, and sales promotions.
Successful promotion strategies rely on key indicators such as advertising effectiveness, public relations impact, direct marketing success, and personal selling efficiency (Arman, 2022).
A purchase decision represents a consumer’s action to buy or refrain from buying a product (Kotler, 2008 in Bafadhal, 2020). This process involves several stages, including problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior.
The rise of e-commerce platforms has transformed the purchasing process, enabling convenient access to product information, simplified transactions, and efficient price comparisons (Sawlani, 2021). Consumers now make purchasing decisions based on factors such as ease of access, pricing transparency, and product availability.
Several factors influence online purchase decisions, including convenience, information availability, product selection, cost, and time efficiency (Ketawetawaraks & Wang, 2011). According to Sawlani (2021), the online purchasing process consists of three key stages: interactivity, transaction, and fulfillment.
Indicators of consumer purchase decisions include:
- Product stability – Ensuring product quality meets expectations;
- Purchase habits – Consumers tend to repurchase familiar brands;
- Recommendations – Consumers often rely on peer reviews and word-of-mouth;
- Repurchase behavior – Satisfied customers are more likely to make repeat purchases.
Consumer satisfaction is a measure of how well a product or service meets customer expectations (Lailatus Sa’adah, 2020). Satisfaction levels vary based on whether a product underperforms, meets, or exceeds expectations. Businesses aim to achieve high satisfaction levels to foster customer loyalty and positive brand perception.
The primary objectives of consumer satisfaction include:
- Building long-term customer relationships;
- Strengthening customer loyalty;
- Encouraging word-of-mouth recommendations;
- Enhancing company reputation and profitability (Lailatus Sa’adah, 2020);
- Several factors influence consumer satisfaction, including product quality, service performance, pricing, emotional response, guarantees, and additional costs (Kotler & Keller, 2016 in Lailatus Sa’adah, 2020).
Consumer satisfaction can be categorized into five types (Tjiptono & Chandra, 2016 in Sihombing, 2022):
- Demanding satisfaction – Consumers actively seek high-quality products and services;
- Stable satisfaction – Consumers consistently return to a brand they trust;
- Resigned satisfaction – Consumers accept a product despite minor shortcomings;
- Secure dissatisfaction – Consumers continue using a product despite not being fully satisfied;
- Demand frustration – Consumers are dissatisfied and may switch to competitors.
Businesses utilize various methods to measure and monitor consumer satisfaction (Tjiptono, 2016), including:
- Customer feedback mechanisms – Gathering input through surveys and complaints;
- Competitive benchmarking – Comparing satisfaction levels with industry peers;
- Service quality assessments – Evaluating responsiveness, reliability, and customer support.
iPanganandotcom is a pioneering food e-commerce platform in Indonesia, established in 2018 as a joint initiative between Store Send Indonesia and Perum Bulog. The platform specializes in digitizing food distribution, providing consumers with an efficient and reliable online shopping experience.
iPanganandotcom operates using a Hyperlocal Connection Concept, supported by over 1,600 food warehouses across Indonesia. This system ensures that food stocks remain readily available at every distribution point, optimizing delivery efficiency. Additionally, the platform employs the ODIN (Order Delivery & Inventory Network) system, which enhances delivery transparency and stock monitoring.
The core advantages of iPanganandotcom’s business model include:
- Free shipping services;
- Time and energy efficiency;
- Guaranteed product availability;
- High-quality food products;
- 24/7 customer service;
- Exclusive promotional offers.
By leveraging digital innovation and strategic distribution networks, iPanganandotcom continues to strengthen its position in the Indonesian e-commerce landscape.
This study utilizes both primary and secondary data sources to analyze the influence of the marketing mix (product, price, distribution, and promotion) on consumer satisfaction, with online purchase decisions serving as a mediating variable.
Primary data was gathered through questionnaire responses from consumers who have made online purchases on iPanganandotcom. The questionnaire aimed to assess consumer perceptions regarding product quality, pricing, ease of distribution, promotional effectiveness, purchase decisions, and overall satisfaction. Meanwhile, secondary data was obtained through literature reviews of prior research on the marketing mix, consumer satisfaction, and e-commerce trends, as well as official documentation related to iPanganandotcom's business model and operations.
The data collection process involved distributing an online questionnaire via Google Forms, targeting consumers who had previously engaged in online transactions on iPanganandotcom.
The study employs a non-probability sampling technique with purposive sampling as the primary approach. This method was chosen to ensure that the respondents meet specific criteria, namely individuals who have purchased products from iPanganandotcom and have experience interacting with its online shopping platform. The target population for this study is considered infinite, as the number of potential consumers using the platform continues to grow.
This research applies the Partial Least Squares (PLS) method using SmartPLS software (version 3) to evaluate the proposed model. The PLS approach was selected due to its ability to handle complex models with multiple latent variables and its suitability for exploratory research.
The data analysis process consists of the following stages:
- Instrument Validity and Reliability Test – Ensuring that the questionnaire items are statistically valid and reliable;
- Assumption Testing – Conducting assessments for sample adequacy, normality, and outliers to confirm that the dataset meets the necessary requirements for further analysis;
- Evaluation of Goodness-of-Fit Criteria – Assessing how well the structural model fits the data using R-square values, factor loadings, and composite reliability metrics.
The findings of this study, based on quantitative descriptive statistical analysis, indicate that the Product (X1) variable at iPanganandotcom Semarang falls within a high category, with scores ranging from 3.67 to 5. This is primarily attributed to the reliability of the ODIN system and the Hyperlocal Connection approach. The overall average score for this variable is 4.31. Similarly, the Price (X2) variable also falls under the high category, scoring an average of 4.19, suggesting that consumers perceive the price as reasonable and aligned with product quality.
The Distribution (X3) variable, which emphasizes ease of access and user-friendly features, has an average score of 4.10, indicating efficient logistics and accessibility. Promotion (X4) is supported by a highly skilled marketing team, achieving an average score of 4.40. These factors collectively influence purchase decisions and consumer satisfaction at iPanganandotcom. The Consumer Satisfaction (Y) variable has an average score of 4.06, illustrating that customers generally feel satisfied with the platform’s pricing and service quality.
In terms of data analysis, the validity test results confirm that all variables possess AVE values above 0.5, signifying their statistical validity. The AVE values for each variable are as follows: Product (X1): 0.626, Price (X2): 0.512, Distribution (X3): 0.563, Promotion (X4): 0.628, Purchase Decision (Z): 0.535, and Consumer Satisfaction (Y): 0.597 (Figure 1).
Moreover, the discriminant validity test confirms that each research indicator meets the required standards, demonstrating strong discriminant validity. The reliability test results further support this conclusion, as all variables satisfy the criteria for Cronbach’s alpha and Composite Reliability. Consequently, the research model is deemed both accurate and reliable.
Additionally, this study highlights that Purchase Decision (Z) significantly mediates the relationship between Product (X1), Price (X2), Distribution (X3), and Promotion (X4) on Consumer Satisfaction (Y), with a mediation strength of 88.6%, categorized as strong.
The study’s hypothesis testing reveals the following outcomes:
- The relationship between Product (X1) and Purchase Decision (Z) is accepted, confirming that product quality significantly and positively impacts purchase decisions at iPanganandotcom Semarang;
- The relationship between Price (X2) and Purchase Decision (Z) is rejected, suggesting that price does not exert a significant or positive effect on purchase decisions;
- The relationship between Distribution (X3) and Purchase Decision (Z) is accepted, indicating that distribution efficiency significantly and positively influences purchase decisions;
- The relationship between Promotion (X4) and Purchase Decision (Z) is accepted, proving that promotional strategies significantly enhance purchase decisions.
Further analysis of the moderating variable (Purchase Decision) shows that it has a statistically significant direct effect on Consumer Satisfaction through its interaction with the Product, Price, Distribution, and Promotion variables.
The Product variable has a T-statistic value of 8.873 (greater than 1.96) and a P-value of 0.000 (less than 0.05), with a path coefficient of 0.648, indicating a strong positive impact on consumer satisfaction.
The Price variable does not significantly influence consumer satisfaction, as evidenced by a T-statistic value of 0.618 (less than 1.96) and a P-value of 0.537 (greater than 0.05), with a negative path coefficient (-0.020).
The Distribution variable exhibits a strong and positive influence on consumer satisfaction, aligning with previous studies that emphasize the role of distribution and service quality in enhancing customer experience.
The Promotion variable also significantly affects consumer satisfaction, reinforcing findings from previous studies that highlight the importance of effective promotional strategies in driving consumer engagement and retention.
Additionally, a descriptive analysis of consumer characteristics and online shopping frequency at iPanganandotcom reveals high consumer satisfaction levels, as confirmed by survey responses. These findings suggest that iPanganandotcom’s product offerings play a crucial role in increasing consumer satisfaction.
The study’s results align with previous research conducted by Sayedi et al. (2023), Hayat et al. (2023), and Sondak et al. (2024), which emphasize the importance of product quality, distribution, and promotional effectiveness in shaping consumer satisfaction. However, a key divergence is observed in the price variable, where this study contradicts previous research that suggested a positive relationship between price and consumer satisfaction. This discrepancy may be due to differences in market segmentation and pricing strategies across different business models.
Overall, the findings confirm that the marketing mix has a significant impact on consumer satisfaction, with online purchase decisions serving as a key mediating factor.
This study confirms that the marketing mix variables (Product, Price, Distribution, and Promotion) have a strong and significant influence on consumer satisfaction in online purchase decisions at iPanganandotcom Semarang. The findings indicate that Product, Distribution, and Promotion play a crucial role in shaping purchase decisions and overall consumer satisfaction.
However, the Price variable does not exhibit a significant or positive impact on purchase decisions at iPanganandotcom. This suggests that consumers prioritize product quality, accessibility, and promotional factors over pricing when making online food purchases.
Furthermore, the Partial Least Squares (PLS) analysis confirms that online purchase decisions act as a mediating variable, reinforcing the idea that the marketing mix influences consumer satisfaction both directly and indirectly. The R-square value of 88.6% demonstrates that nearly 90% of consumer satisfaction can be attributed to the interaction between product, price, distribution, and promotion through purchase decisions.
These findings provide valuable insights for digital food commerce platforms, emphasizing the need for continuous product innovation, strategic distribution networks, and effective promotional activities to enhance consumer satisfaction.
Given that the product variable demonstrates strong reliability and offers a diverse range of product variants, iPanganandotcom Semarang should focus on maintaining and expanding its product selection. Ensuring consistent product quality while introducing innovative product variations will further enhance consumer satisfaction and loyalty.
Despite the price variable not significantly influencing purchase decisions, iPanganandotcom must still ensure pricing consistency, competitive pricing strategies, and value-added offerings to meet consumer expectations. Periodic price evaluations should be conducted to align with market trends and consumer purchasing power.
In terms of distribution, iPanganandotcom should continue to optimize logistical efficiency by enhancing its Hyperlocal Connection and ODIN (Order Delivery & Inventory Network) system. This will improve delivery speed, stock availability, and overall service reliability, further strengthening consumer trust and satisfaction.
Moreover, promotional strategies should be continuously developed and refined. Leveraging digital marketing, targeted advertisements, and loyalty programs will help increase brand engagement and conversion rates. Additionally, implementing personalized promotions based on consumer preferences can significantly enhance customer retention and lifetime value.
Overall, a dynamic, data-driven approach that aligns with current market trends and digital innovations will be essential for sustaining competitive advantage in the evolving e-commerce landscape.
Thank you to the head of iPanganandotcom and all of staff of employee's, research lecturer in this research.
Original paper, i.e. Figures, Tables, References, and Authors' Contacts available at http://rjoas.com/issue-2025-02/article_06.pdf