THE INFLUENCE OF PRICE CONSCIOUSNESS, PRICE-QUALITY INFERENCE, AND PRODUCT INVOLVEMENT ON WILLINGNESS-TO-PAY ( A Case of Premium Batik of Batik Sri Asih Semarang )

Abstract

Batik is a technique of wax-resist dyeing applied to whole cloth originated from Indonesia. In order to reach the upper-middle segment, there have been some producers that produce batik as a premium product. Batik Sri Asih Semarang is one of batik producers produces batik as a premium product. Batik Sri Asih Semarang needs to analyze the price perceptions and consumer behavior related to their products and pricing strategy in order to keep the loyal customers and also to find new consumers. This study aims to analyze the influence of factors of willingness-to-pay for premium batik of Batik Sri Asih Semarang. Price consciousness, and product involvement as independent variables and willingness-to-pay as dependent variable. This research uses price-quality inference as intervening variable. Sample of this research is the consumers of Batik Sri Asih Semarang who had purchased and also have been using the premium batik of Batik Sri Asih Semarang. The sampling method in this research is purposive sampling. The analysis technique used is Structural Equation Modeling – AMOS. The results of this study show price consciousness has a negative effect on willingness-to-pay, product involvement has a positive effect on price-quality inference, product involvement and price-quality inference have positive effect on willingness-to-pay, and price-consciousness has no significant effect on price-quality inference.