INFLUENCE OF BRAND IMAGE, PERCEIVED PRICE, AND WORD-OF-MOUTH ON PURCHASE INTENTION OF LUNIO DESIGN PRODUCTS

: The creative industry is an important factor in creative economic activities. This research aims to analyze the influence of brand image, price perception, and word-of-mouth on purchase intentions for Lunio products. This study uses a quantitative approach by distributing questionnaires to respondents to test the effect of the independent variables on the dependent variable. The independent variables used in this research are brand image (X1), price perception (X2), and word-of-mouth (X3), while the dependent variable is purchase intention (Y). The research population is potential client candidates according to the predetermined characteristics, namely the age range of 15–16 years, high school grades 10–12, and attending private high schools in Surabaya. Lunio sampling used a purposive sampling technique with a total sample of 100 people. This study uses the multiple linear regression analysis method. The conclusion from this study is that brand image is an important variable that greatly influences the intention to buy Lunio Design products, and the price perceptions variable influences the intention to buy Lunio Design products, but the level of significance is not as big as the other two variables, namely brand image and word-of-mouth. Word-of-mouth is an important variable that greatly influences the intention to buy Lunio Design products.


A. INTRODUCTION
The creative industry is an important factor in creative economic activities.Currently, Indonesia recognizes the hope for its economy to grow and compete in the global economic era through the development of the creative economy, which focuses on producing goods and services using skills and creativity.The creative economy is employed to provide added value through ideas stemming from human creativity and is based on knowledge, including cultural heritage and technology.At present, Indonesia has more than 8.2 million businesses in the creative industry, making it a significant market player in the industry.According to the publication from the Ministry of Tourism and Creative Economy, the subsector of the creative economy contributes Rp1,153.4 trillion to the GDP, which is 7.3% of the total national GDP, 15.2% of the workforce, and 11.9% of exports (source: https://www.kominfo.go.id,January 2022).Based on this data, we can conclude that the creative economy has a continuously growing percentage, making it a significant market in Indonesia.Based on statistical data obtained from the Ministry of Tourism and Creative Economy in 2020, there was a growth in the workforce within the creative economy in Indonesia from the year 2011, where the number of creative economy workers was 13,447,184 individuals, and by the year 2019, the workforce had reached 19,240,184 individuals.As shown in Figure 1, the workforce growth in the creative economy sector reached a rate of 4.02%, whereas the national workforce growth was in the range of 2.02%.

Figure 1 Creative Economy Workforce Growth Graph
Source: Kemenparekraf (2020) The awareness of Indonesian society regarding the importance of good planning is increasing.Businesses and consumers are becoming more conscious that good design can add value to a product, set it apart from the competition, and provide a better user experience.Indonesian society is becoming more receptive to innovation and new products.They seek products with unique, creative, and distinctive designs.This encourages product designers to create innovative and appealing solutions.The growing number of educational institutions and product design training programs in Indonesia has contributed to generating a more skilled and talented workforce in this field.More designers possess a deep understanding of product design and are capable of producing high-quality work.The business opportunities for product design in Indonesia are very promising.Here are some business opportunities that can be explored in the product design industry, one of which is Innovative Product Design.There is a high demand for innovative products that provide new experiences for users.This business opportunity involves designing unique, creative products with new features or functions that solve problems or meet consumer needs.
One of the players in the field of product design is Lunio Design.Established in 2017, initially our main product focus was designing invitations for birthdays, with a target audience of teenagers who celebrate their sweet seventeenth birthday.Then, in 2018, we expanded into creating souvenirs, and in 2019, due to high demand, we added decoration products.At first, Lunio only handled small-scale decorations like table decor.However, by the end of 2019, we started receiving requests for event backdrops, starting with simpler designs.During this time, the decoration business began to thrive as one event after another came in.However, in early 2020, the COVID-19 pandemic hit, causing difficulties for many industries.Consumer preferences rapidly changed and became hard to predict, and the creative industry underwent rapid transformations.Various business sectors experienced declines due to the pandemic, and the event industry was also affected, including wedding organizers, MCs, hotels, restaurants, and decorators.When the pandemic began, the government imposed restrictions on gatherings and events that attracted crowds.The impact of these government regulations during the pandemic on Lunio was the cancellation of many previously agreed-upon collaboration contracts, project delays, and uncertainty.Despite these challenges, Lunio had to persevere in order to maintain its relationships with employees (avoid layoffs) and retain assets such as transportation vehicles, warehouses, properties, and other equipment.
Lunio tried various innovations to sustain its business, and during that time, the trend of photoshoots emerged as a substitute for the sweet seventeen events themselves.This type of photoshoot is known as "presweet."In a presweet photoshoot, additional decorations are typically used to create a livelier setting in line with the client's requested theme.Before the pandemic, presweet photoshoots often took place in a studio environment.However, the backgrounds available in studios couldn't be customized according to specific requests; the studio provided a limited set of background options, as shown in Figure 2 on the left.In the middle of 2020, Lunio began to enter the decoration segment of photoshoots, but with an innovative approach that allowed customization based on the client's desires.This was well-received by the market because, at the time, there were relatively few competitors offering this level of customization.Many studios also began to set up plain white rooms that could easily be decorated according to the client's preferred theme or concept.This made the presweet moment feel more unique and personal for the client.Therefore, there is a need for further adjustments in Lunio's business so that the sales growth at Lunio can stabilize and increase in the coming years.Growth itself is an indicator of a company's advancement, and a company can be said to experience positive growth if there is consistent improvement in its sales activities, which has a strategic impact on the company.As one of the players in the lifestyle industry, Lunio must be able to face competition in the business.Table 1 reports three competitors that focus on price lists and quality comparisons.The table shows that the current prices set by Lunio are still quite competitive.The business owner intends to raise prices in the next 2 years with the aim of increasing the company's profit.For now, Lunio is more focused on expanding brand awareness and adding to the company's assets.This has prompted the author to research, "Does price perception influence consumer purchase intention?"This research aims to analyze the influence of brand image, price perception, and word-of-mouth on purchase intention.This research uses potential consumers of Lunio Design, especially students at selected high schools in Surabaya, with a total sample of 100 respondents.Based on regression analysis, it shows that brand image, price perception, and word-of-mouth influence purchase intention, with word-of-mouth having the highest contribution in the model.The rest of the discussion of this paper is that Section B presents a literature review, and Section C describes research methods, data, research samples, and analysis techniques.Sections D and E present and discuss the research results.Finally, this paper draws conclusions and provides limitations in sections F and G, respectively.

B. LITERATURE REVIEW
This paper uses the theory of planned behavior (Azjen, 1991(Azjen, , 2012)), which explains the model that behavior is based on intention, which is determined by attitude, subjective norms, and perceived behavior control.This research develops an empirical model by adopting a model from this theory to explain the relationship between the variables used in this study regarding the influence of brand image, price perception, and word-of-mouth on purchase intention.Willingness to buy is part of the behavioral component of consumer attitudes.Willingness to buy is the stage of respondents' inclination to take action before the actual purchase decision is made.The definition of a purchase decision, according to Kotler and Keller (2016), is the stage where consumers evaluate products from several available brands and form an intention to purchase a specific brand.

Effect Brand Image on Purchase Intention
Brand image is defined by Aaker in the study "Impact of Brand Image and Service Quality on Consumer Purchase Intention: A Study of Retail Stores in Pakistan" as the set of brand associations stored in consumers' memories.The reasons in consumers' minds are linked to brand specifications.Brand image is the perception of a brand created in consumers' memories due to their engagement with the brand.Brand image is similar to a consumer's self-image, as consumers associate themselves with the brand.In this highly competitive environment, brand image is crucial for creating a well-positioned brand, and companies always play a significant and authoritative role in this regard.Customers' emotions towards a brand are based on their identification with the brand image.A unique set of associations in consumers' minds communicates expectations and creative images, which are considered important for attracting customers.Consumer purchasing decisions often depend more on the brand image than on the physical characteristics of the brand.Brand image assists consumers in making purchasing decisions, differentiating a brand from its competitors.Brand image, commonly referred to as brand image, is a mental representation that arises due to emotions and reactions to the environment.It is the consumer's belief about a brand that should be maintained in the customer's mind to foster brand loyalty.They mention several factors that shape brand image.(i) Service Quality: The quality of services provided by a company that offers products and services; (ii) Trust: The company is trusted by customers and can be relied upon in terms of customer perceptions or assumptions; (iii) Service: The company serves customers well and provides the best service; (iv) 4. Risk: The company should be able to address various issues that arise to find better solutions for serving customers; and (v) Price: The relationship between the product or service and the cost or value incurred by the customer.A number of studies found that brand image has determined purchase intention for consumers of cosmetic products (Astuti, 2021;Porenika, 2020), smartphone consumers (Irawan & Suprapti, 2020), online universities (Benhardy et al., 2020), and shoe consumers (Septiani & Chaerudin, 2019).Those studies reported that brand image has a positive effect on purchase intention; however, Maknunah and Rahmat (2020) found that brand image has no effect on purchase intention for smartphone consumers.Hypothesis 1 states that brand image influences purchase decisions.

Effect of Price Perception on Purchase Intention
Price perception is the consumer's evaluation and emotional association regarding whether the price offered by the seller and the price compared to others make sense, are acceptable, or can be justified (Lee & Lawson-Body, 2011).According to Schiffman and Kanuk (2013), perception is an individual's process of selecting, organizing, and interpreting incoming information stimuli into a comprehensive mental image.Price perception is how consumers view prices as high, low, or fair.Chang and Wildt (1994) define price perception as a representation of consumer perception or subjective perception of objective prices.In a competitive market where competition is increasing, price differences are seen as an important factor in attracting consumer interest.In general, consumers tend to choose products with the lowest prices.Some indicators of price perception include (i) the affordability of the product's price; (ii) price competitiveness with similar products; and (iii) price suitability with the product's quality (Kotler & Keller, 2016).Previous studies found empirical evidence that price perception affects purchase intention.Septiani and Chaerudin (2019) examine the relationship between price perception and purchase intention.They provide empirical evidence that price perception has a positive effect on purchase intention.Benhardy et al. (2020) investigated the effect of price perception on purchase intention at online universities.They found that price perception has a positive effect on purchase intention.Hypothesis 2 states that price perception influences purchase decisions.

Effect of Word-of-mouth on Purchase Intention
According to Hawkins et al. (2004), word-of-mouth is the spread of information from one individual to another in the form of oral communication, such as face-to-face conversations.However, with the rapid development of technology, communication methods have evolved and become more accessible through phones, chatting, and the internet, especially through social media.The dimensions of word-of-mouth are as follows: (i) Positive Experiences: This involves customers who have a desire to share positive aspects of a product, service, or brand they have consumed with others; (ii) Recommendations: It involves customers who want to recommend a superior or high-quality product to others around them who need information about it; and (iii) Invitations: It involves customers who are willing to invite or influence others to use a product they have consumed.The characteristics of a product or service that have the ability to fulfill consumer desires.According to Kotler and Armstrong (2018:249), product quality is a characteristic of a product that supports its ability to satisfy customer needs and meet customer expectations.Word-of-mouth (WOM) is product information transmitted from one person to another.Therefore, wordof-mouth can be understood as product information spread from individual to individual.Word-of-mouth is often also known as viral marketing, which is a marketing technique used to spread a marketing message from one user to another, potentially creating exponential growth.Some studies reported that word-of-mouth influence purchase intention.Astuti (2021) found that word-ofmouth influences purchase intention among cosmetic product consumers.While First et al. (2023) reported that word-of-mouth also affects consumer purchase intentions of education service providers, Aries (2018) also provides evidence that word-of-mouth influences consumer purchase intention at Ritel stores in Pakistan.Baker et al. (2016) investigated the effect of word-of-mouth conversations about a brand on intention to purchase a brand.Their finding strongly supports the hypothesis that word-of-mouth influences the intention to purchase a brand.Hypothesis 3 states that word-of-mouth influences purchase decisions.

C. RESEARCH METHODS
This research adopts a quantitative approach using a survey method and questionnaire distribution to respondents.The main objective is to test the influence of independent variables on the dependent variable.The independent variables to be studied include brand image (X1), price perception (X2), and word-of-mouth recommendations (X3), while the observed dependent variable is purchase intention (Y).The research population consists of potential clients who meet the predetermined characteristics.The age range is 15-16 years, in high school grades 10-12, attending private high schools in Surabaya.Schools such as SMA Kristen Gloria 1, SMA Kristen Gloria 2, SMA Katolik St Louis 1, SMA Kristen Petra 1, SMA Kristen Petra 2, SMA Kristen Masa Depan Cerah, SMA Citra Berkat, SMA Ciputra, and SMA Cita Hati, with the majority residing in Surabaya, A non-probability sampling technique was used in this study.This technique allows every member of the population to not have an equal chance of being selected as a sample.This method is used to obtain a representation that is suitable for the sample.In this study, the technique used is purposive sampling, where samples are selected based on specific criteria predetermined by the researcher.The data required for this research is primary data.Data is obtained through the online distribution of questionnaires that have been prepared in advance in the form of a list of questions to respondents.This study employs three independent variables and one dependent variable, including brand image (X1), price perception (X2), and word-of-mouth (X3).The dependent variable is purchase intention (Y).Table 2 presents the operational definitions of each research variable, indicator, and statement item.

Price Perception
According to Lee et al. (2011), price perception is the emotional assessment by consumers of the price offered by a seller and how it compares to others, whether it is acceptable or justifiable.
1. Affordability of product price 2. Price competitiveness 3. Suitability of the price with the product's quality

Word-ofmouth
Cleland stated that Word-of-mouth is often also known as Viral Marketing, which is a marketing technique used to spread a marketing message from one usesr to another, potentially creating exponential growth.

Purchase intention
The definition of purchase intention according to Kotler & Keller is the likelihood of consumers buying a brand and service or the likelihood of consumers switching from one brand to another when the perceived benefits outweigh the sacrifices to obtain it, thereby increasing the motivation to make the purchase.

Transactional Interest 2. Referential Interest 3. Exploratory Interest
This research uses multiple regression analysis to estimate parameter coefficients and test research hypotheses: The t test is used to determine the influence of brand image (X 1 ), price perception (X 2 ), and word-of-mouth (X 3 ) on purchase intention (Y).Where α is the intercept, β is the parameter coefficient of the respective variable, and ε the residual error, and the subscript character of i represents cross-section data.

D. RESULT 1. Validity and Reliability Tests
Tables 3 and 4 present the validity and reliability tests, respectively.Table 3 shows all indicators for all variables have an R-value higher than the r-table and are statistically significant at 1%.While Table 4 reports that all variables have a Cronbach's alpha higher than 0.6, The result reports in the tables confirm that the statistical results of all indicator variables exceed the minimum requirement for both the validity and reliability tests.

Tests for Classical Regression Assumptions and Model Goodness of Fit
This study reports that the residual error is normally distributed.This is indicated by the Kolmogor-Smirnov value of 0.068 to test a normal distribution with a probability level of significance of 0.20.Heteroscedasticity testing uses the Glejser test.This technique performs regression of independent variables on the absolute residual error (Gujarati & Porter, 2009: 379).Table 5 reports that the Glejser test results show that all independent variables have no effect on the absolute value of residual error.This means there is no heteroscedasticity in the regression model.This study employs a varian inflating factor (VIF) to measure the degree of severity of the multicolinearity effect on the regression model, which leads to a biased estimate of parameter coefficients.Table 6 shows that all independent variables have a VIF range of 1.230 to 1.320.The values lower than 10 indicate that there is no severe multicolinearity in the regression model.In addition, the regression model provides an F-value of 18.162, with a probability of statistical significance of 1%.It suggests that the model meets the goodness-of-fit test.

Test for the Hypothesis
Table 6 reports a regression analysis for purchase intention.Brand image and word-of-mouth have a positive effect on purchase intention, with the probability of statistical significance at 1%.These results confirm both hypotheses 1 and 3 that brand image and word-of-mouth influence purchase intention, respectively.While price perception has a positive effect on purchase intention, the probability of statistical significance is 5%.This result also confirms hypothesis 2 that price perception influences purchase intention.

The Influence of Brand Image on Purchase intention
Research findings support hypothesis 1 that brand image influences purchase intention.This effect is positive and statistically significant at 1%.This finding indicates that the more aligned the brand image, the more in line with customer expectations.This finding is consistent with a marketing study by Astuti (2021), andPeronika et al. (2020) also reported that brand image has a positive effect on consumers intentions to purchase cosmetic products.In addition, this study is also in line with Benhardy et al. (2020), which provide empirical evidence that brand image positively affects student intention to study at online universities, as well as Septiani and Chaerudin (2019) for shoe consumers.While in general, number studies provide that brand image has a has a positive effect on purchase intention, we still need further discussion for the inconsistent finding in smartphone consumers between Irawan and Suprapti (2020), who find brand image has a positive influence on purchase intention, and Maknunah and Rahmat (2020), who provide that brand image has no effect on purchase intention.

The Influence of Price Perception on Purchase Intention
This study provides empirical evidence that confirms hypothesis 2 that price perception influences purchase intention positively.This indicates that the more the price offered aligns with the quality or service provided, the higher the purchase intention towards Lunio products will be.Lunio's target market consists of smart customers.individuals who possess good knowledge and understanding of the products or services they purchase.They don't just consider the price and appearance of a product; they also research and compare features.Read reviews.and gather information before making a purchase decision.Smart customers seek products or services that provide them with benefits aligned with their needs and preferences.Consequently, their future purchase decisions are based on rational assessments backed by the information they've collected.When considering the price of a product or service, it's essential not only to look at the price in isolation but also to consider the price perception in relation to the service, benefits, and competitiveness offered.By implementing these strategies, Lunio can effectively appeal to its target market of smart customers and ensure that its pricing aligns with the perceived value and quality of its offerings.Lunio is capable of providing specific advantages or uniqueness that distinguish its products or services from competitors.particularly in terms of conceptual decoration.Lunio can consider pricing slightly higher.and consumers will be willing to pay a higher price if they see unique added value or a better experience.By conducting regular market research to understand consumer price perceptions, Lunio can benchmark itself against competitors.setting prices in line with the value and benefits desired by its target consumers.By considering price perception and viewing it as part of an overall strategy, it is expected that Lunio can optimize product or service pricing in the future to achieve a balance between value, competitiveness, and consumer satisfaction.This indicates that consumers' perceived price has a significant impact on purchase intention and also influences consumer satisfaction and loyalty.It is important for companies to set prices that align with the quality of the products offered.creating the emotions and satisfaction expected by consumers.This study is also parallel to Septiani and Chaerudin (2019) and Benhardy et al. (2020), which confirmed empirically that price perception has a positive effect on purchase intention.

The Influence of Word-of-mouth on Purchase Intention
The empirical result of this study confirms hypothesis 3 that word-of-mouth influence purchase intention.It can be concluded that recommendations from close acquaintances have a positive influence on the purchase intention of Lunio products.Word-of-mouth has the highest contribution in the research model.It is indicated by the highest value of the parameter coefficient and t-value.Wordof-mouth from Lunio refers to the communication conducted by individuals to other individuals about a brand, product, or service.using organic word-ofmouth.This occurs when individuals naturally share their experiences, recommendations, or conversations about a brand or product with others without external commercial influence or incentives.This communication takes place in everyday interactions and can be done both directly and indirectly, such as through social media.Indicators that can influence organic word-of-mouth include, firstly, positive experiences.When consumers have positive experiences when using Lunio's services.They are more likely to share those experiences with their friends or acquaintances.The research finding complements the generalization of research results that parallel other empirical evidence in various business fields with the same results that word-of-mouth has a positive effect on purchase intention.This finding is in line with research conducted by Sumardy et al. ( 2021), which found that the phenomenon of word-of-mouth has the potential to drive consumer purchases.Word-of-mouth can also influence consumer communities.be cost-effective.create a positive image for products.and touch upon consumer emotions.Other studies also confirm that different consumers, such as cosmetic product consumers (Astuti, 2021), service provider consumers (First et al., 2023), and consumers in retail stores in Pakistan (Aries, 2018), also provide evidence that word-of-mouth influences consumer purchase intention at Ritel stores in Pakistan.

F. CONCLUSION
Based on the analysis of the research results regarding the influence of brand image, price perception, and word-of-mouth on the purchase intention of Lunio Design products, The following conclusions can be drawn: (i) It was found that brand image plays a significant and strong role in influencing the purchase intention of Lunio Design products; (ii) It was found that price perception has an influence on the purchase intention of Lunio Design products.but its significance is not as strong as the other variables.namely brand image and word-of-mouth; and (iii) It was found that word-of-mouth plays a significant and strong role in influencing the purchase intention of Lunio Design products.Word-of-mouth is the highest contribution in the model of purchase intention.

G. LIMITATION
In this research, there are several limitations that need to be considered.Including (i), this study focuses on the business environment of Lunio Design and the decoration industry in the city of Surabaya.Therefore, the results of this research may not necessarily be generalized to other companies operating in different cities. with different corporate images.and targeting different markets; (ii) in the extraction of sums of squared loading, the cumulative total variance accounted for is only 36.2%.This means that there is still 63.8% of variance that could contribute to purchase intention for Lunio products that has not been explored in this study; (ii) Seminal previous studies have concerned that brand image may address endogeneity problem thar related with brand equity, brand preference, and brand usage that related with purchase intention (Bird et al., 1970;Cobb-Walgen, et al. 1995;Faricloth, 2001).Ajzen, I. (1991).The theory of planned behavior.Organizational Behavior and Human Decision Processes 50 (2), 179-211.https://doi.org/10.1016/0749-5978(91)90020-T.