The Effect of Product, Price and Promotion on Purchase Decision-Mediated by Customer Satisfaction of Oriflame M3Network Community

This study was aimed to analyse the effect of product, price, promotion, customer satisfaction, purchase decision. The study participant was 125 people. data were collected by questionnaires and structural equation model (SEM) were applies as an analysis technique. The results analysis showed that product quality, price, personal selling have positive and significant effect on the customer satisfaction and customer loyalty. The implication is product quality, price, personal selling need to be increased in order to customer satisfaction and customer loyalty.


Introduction
The competition between the personal care and cosmetics industry markets is increasingly competitive. This is proven by the many types of cosmetics in circulation, both domestic and foreign production (Ikanita, 2012). The cosmetics and body care industries compete to win the competition and devise strategies to attract consumers' wants and meet expectations. Along with the times, technology, and changes in human lifestyles, the types and levels of consumer needs and desires also develop dynamically. The development of cosmetic products on the market affects a person's attitude towards purchasing decisions and using goods. The purchase of a product is no longer to fulfill a need, but out of desire. In addition, consumers decide to choose to use certain products (cosmetics) in order to clarify their identity so that they are considered good in certain communities. Cosmetics are a unique product because apart from having the ability to fulfill women's basic needs for beauty. Often it becomes a means for consumers to clarify their social identity in the eyes of the community The use of cosmetics is a need with multiple priorities, starting as primary needs, secondary needs (complementary), and tertiary needs (luxury goods). Increasing people's purchasing power and increasing purchasing power per individual can push the level of cosmetic use from a complementary level to a more prioritized level, thereby increasing the volume growth of cosmetic

Open Access Indonesia Journal of Social Sciences
The competition for the cosmetics industry in Indonesia is very tight. The intense competition is due to the opportunity for Indonesia's large population of around 250 million to become a market share for the cosmetics industry. One of the well-known cosmetic brands and its wide marketing is Oriflame. Oriflame is a cosmetics company from Sweden, and is currently experiencing a fairly rapid development. The marketing process for Oriflame products is carried out through the formation of members where Oriflame members are consumers and at the same time marketing Oriflame products to other consumers. Thus, the development of Oriflame product marketing is highly dependent on the active members in buying products as well as marketing them. This study aims to analyze the effect of products, prices and promotions on purchasing decisions and customer satisfaction of Oriflame in the M3Network community.

Marketing
Marketing mix is a collection of controlled tactical marketing tools that the company combines to produce the response it wants in the target market Kotler and Armstrong, (2008: 62).
The marketing mix consists of all the things a company can do to influence the demand for its products. The marketing mix is the core of a marketing system. Analysis of the marketing mix is very important to be able to adjust market desires with the products to be sold. Based on the above theories, it can be concluded that the marketing mix is a group of marketing components consisting of 4Ps: product, price, place and promotion which are interrelated with each other, with the aim of meeting consumer needs and satisfaction and achieving company goals.
Kotler and Keller are quoted by Benyamin Molan (2007: 23), giving the understanding that the marketing mix is a marketing tool that companies use to pursue their marketing goals.
Meanwhile, according to Kotler and Armstrong (2008: 62), basically there is a concept of tactical and controlled marketing tools that are implemented in an integrated manner to get a response from its customers.

Product
Basically, a product is something that is offered by producers to consumers to fulfill their needs and wants. Products can be in the form of goods (something tangible or tangible), which is something that is physical in the form of a production process in an organization or company. In addition, products can also be services (meaning non-physical or intangible). It should also be emphasized that consumers do not only buy products to satisfy their needs, but also The product is the central point of marketing activities because the product is the result of a company that can be offered to the market for consumption and is a tool of a company to achieve the goals of the company. A product must have advantages over other products in terms of quality, design, shape, size, packaging, service, warranty, and taste in order to attract consumers to try and buy the product.
Product planners must think about products and services at three levels (Kotler and Armstrong, 2003), namely the core product, the actual product, and additional products. The most basic level is the core product. This level answers the question of what consumers actually buy. The core product is at the center of the total product.
The core product contains a variety of benefits for solving problems and those that consumers look for when purchasing a particular product or service The second level is the actual product. The product planner must build the actual product around the core product. The actual product must have at least five characteristics of quality levels, features, design, brand, and packaging.
Furthermore, the product planner must embody the additional product around the core product and the actual product by offering additional services and benefits to consumers.

Price
Price is an element that is different from other elements in the marketing mix. If the other element in marketing (namely product, place / distribution, and promotion) is expenditure, then price is an element that has the characteristic of generating or getting income. Buchari Alma (2007: 169) states that price is the value of an item expressed in money. Philip Kotler (2005: 24) states that price in a narrow sense is the amount of money billed for a product or service, while in a broad sense it is the amount of value that consumers exchange for the benefits of owning or using a product or service. According to the definition above, the policy regarding prices is only temporary, meaning that producers must follow price developments in the market and must know the company's position in the overall market situation.
Price is basically a basic theory of the marketing mix and consumer behavior. Both can be used when looking at price perceptions of the purchase decision of a product or service. When consumers are familiar with the goods or services they want or need, consumers will start looking for information about the price of a product or service.
The search for information is what is known as a psychological process in consumer behavior, namely perception. Before deciding to buy a product or service, consumers will perceive whether the price of a product or service is affordable at a low price or a discount (promo) or a bonus (merchandise) (Ali Hasan, 2013). After that, the new consumer makes a purchase decision for a product or service. After buying, consumers will also evaluate the price of a product or service, whether it is in accordance with the price of a product or service or if there is a need for a discount. On this basis, consumers assess their own satisfaction with a product or service.
And then, will return to buying goods or services previously purchased as a result of satisfaction with the price offered for a product or service.

Promotion
Promotion is one of the important marketing activities for companies in an effort to maintain continuity and improve sales quality, to increase marketing activities in terms of marketing goods and or services from a company, not only developing products, setting prices, and using distribution channels, but also must be supported

Promotion Mix
Promotion mix is a communication tool between companies and consumers or potential consumers. The promotional mix according to Kotler and Armstrong (2014) is a specific blend of advertising, sales promotion, public relations, personal selling, and direct marketing tools that companies use to communicate customer value persuasively and build customer relationships, a combination of promotional tools designed to achieve goals and provide information that directs consumers to be persuaded to make a purchase.

Purchasing decision theory
The purpose of marketing is to meet and satisfy the needs and wants of target customers. information, influence or persuade, and then remind the target market of the company and its products, so that they are willing to accept, buy, and be loyal to the products offered. by the company concerned.
According to Kotler and Armstrong (2012) consumers will go through five stages in making a purchase decision. An overview of the purchasing decision process in the form of recognition of needs, information search, evaluation of alternatives, purchasing decisions, and postpurchase behavior.

Buying decision
Purchasing decisions taken by consumers are a set of decisions that have been organized. Each Purchasing decisions can also be influenced by personal characteristics including age and life cycle stage, occupation, economic conditions, lifestyle, and the buyer's personality and selfconcept.

Consumer satisfaction
Zeithaml and Bitner (2000) give the understanding that customer satisfaction is an assessment of the characteristics or features of a product or service. This satisfaction is created by quality, service, and customer value. In essence, if the product's performance is smaller than the expected performance, the customer will feel dissatisfied. Meanwhile, if the product performance is the same as the expected performance, the customer will be satisfied.
Furthermore, if the product performance is greater than the expected performance, the customer will feel very satisfied. Tjiptono (2008)

Consumer satisfaction model
Basically the goal of a business is to create satisfied customers. In line with that, various attempts have been made to develop a theoretical framework to explain the determinants, formation processes, and consequences of customer satisfaction. Broadly speaking, customer satisfaction research is based on three main theories, namely: contrast theory, assimilation theory, and assimilation -contrast theory (Tjiptono, 2011, p. 298). Contrast theory, assumes that consumers will compare actual product performance with pre-purchase expectations. If the actual is greater than 50 or equal to expectations, the customer will be satisfied.
Assimilation theory, states that after-purchase evaluation is a positive function of pre-purchase consumer expectations. Assimilation -contrast theory, holds that the occurrence of the assimilation effect or contrast effect is a function of the level of the gap between expected performance and actual performance.

Methods
This research is descriptive research. The population in this study were all customers who

Respondent characteristics
The characteristics of the respondent can provide some simple information about the respondent's condition as the object of the research. Respondents in this study were tabulated by gender, education, and age. The general description of the respondent needs to be known because the answer given by the respondent to each of the questions asked may be different due to different backgrounds. Based on the primary data that has been collected, the following characteristics of the respondents have been obtained (table 1).

Product variable description analysis
The results of descriptive analysis of the respondents' answers to each indicator of product variables are presented in table 2. Table 2 shows that most of the respondents answered strongly agree with "SS" (45%). And the lowest result is the answer strongly disagree with "STS" (1%).

Analysis of price variable descriptions
The results of the descriptive analysis of the respondents' answers to each indicator of the promotion variable are presented in table 3. Table   3 shows that most of the respondents answered strongly agree "SS" (45%). And the lowest result is the answer strongly disagree with "STS" (1%).

Promotion variable description analysis
The results of the descriptive analysis of the respondents' answers to each indicator of the promotion variable are presented in table 4. Table   4 shows that most of the respondents answered agree "S" (40%). And the lowest result is the answer strongly disagree with "STS" (1%).

Analysis of the description of the purchase decision variables
The results of descriptive analysis of respondents' answers to each indicator of the purchasing decision variable are presented in the following table (table 5). Table 5 shows that most of the respondents answered agree "S" (40%). And the lowest result is the answer strongly disagree with "STS" (1%). The answers disagree "TS" (6%), Neutral "N" (23%), Strongly Agree "SS" (30%) with a total of 125 respondents.

Analysis of customer satisfaction data descriptions
The results of descriptive analysis of respondents' answers to each indicator of the consumer satisfaction variable are presented in the following table (table 6). Table 6 shows that most respondents answered strongly "SS" (47%).

Effect of products on purchasing decisions
Products have a positive and significant direct effect on purchasing decisions, which means that the better the product is able to increase purchasing decisions. The direct effect regression coefficient value is 0.462 which means it is positive, so it can be interpreted that each increase in the value of one product is able to increase the purchase decision by 0.462. Based on the results of testing hypothesis 1 is accepted. This is in accordance with the theory (Susanto, 2013) that the more attractive the price offered for purchasing the product, the more it will increase consumer decisions to buy the product. Sudharto

Product influence on customer satisfaction
It is shown that the product has a positive and significant direct effect on customer satisfaction, which means that the better the product is able to increase customer satisfaction. The direct effect regression coefficient value is 0.333 which means it is positive, so it can be interpreted that each increase in the value of one product is able to increase customer satisfaction by 0.333. Based on the results of testing hypothesis 4 is accepted.
The results of this study prove that the better the product can increase customer satisfaction. aspects that contain certain utilities / uses needed to obtain a service. Utility is an attribute or factor that has the potential to satisfy certain needs and wants.

The effect of promotion on customer satisfaction
It is shown that promotion has a positive and significant direct effect on customer satisfaction, which means that the better the promotion is able decisions. Consumer satisfaction is a decisionmaking process carried out to determine the need for goods and services that need to be purchased and to identify, evaluate and choose between alternative brands. Consumers tend to buy products they like in terms of the most preferred brands, and the task of producers is to fulfill consumer desires in order to attract consumers to buy their products to achieve company goals.

Purchasing decisions are able to mediate the effect of the product on customer satisfaction.
It is shown that purchasing decisions are able to mediate the effect of products on consumer satisfaction and have a positive and significant direct effect, which means that the better the product the better the purchasing decisions can increase customer satisfaction. the value of the critical ratio (CR), the effect of the purchasing decision variable is able to mediate the effect of the product on consumer satisfaction is 2.215> 1.96 (the critical Z value for the 95% degree of confidence) with a probability value (p) of 0.026 <0.05 which means that it is positive , so that it can be interpreted that each increase in the value of one in purchasing decisions is able to mediate the effect of the product on customer satisfaction.

Purchasing decisions are able to mediate the effect of price on customer satisfaction
Based on the results of testing the hypothesis 9 is rejected. It is shown that purchasing decisions are able to mediate the effect of price on consumer satisfaction and have a negative and significant direct effect, which means that the better the price, the better customer satisfaction is able to increase the purchase decision. the value of the critical ratio (CR) the effect of the purchasing decision variable being able to mediate the effect of the product on customer satisfaction is 2.040>