The Effect of Price, Promotion, and Location to the Interest of

Tourist to Revisit Banten Lama

Fiesty Utami

, Edy Arisondha

and Tri Wahyudi

Department of Banking and Finance, Sultan Ageng Tirtayasa University, JL. Raya Jakarta Km.4, Serang, Indonesia

Department of Accounting, Sultan Ageng Tirtayasa University, JL. Raya Jakarta Km.4, Serang, Indonesia

Keywords: Price, Promotion, Location, Revisit, Tourism.

Abstract: This study aims to determine the influence of price, promotion, and location on the interest in returning

tourists to the tourism area of Banten Lama, both partially and simultaneously. This study uses price (X

promotion (X

), location (X

) as variable X. While the aspects used to explain variable Y is the tourist’s

interest to revisit Banten Lama. The sampling technique was purposive sampling with a sample size of 100

respondents who have visited the Banten Lama tourist attraction. The data analysis method used is multiple

linear regression analysis. This study shows that price, place, and promotion simultaneously have a

significant effect on revisit interest. Price, place, and promotion partially have a significant positive impact

on revisit interest.

1 INTRODUCTION

The cultural diversity and many tourism areas spread

from Sabang to Merauke have made Indonesia a

favorite tourist destination. Geographically,

Indonesia is divided into three regions, namely

eastern Indonesia, central Indonesia, and western

Indonesia. Each of these parts is unique and diverse,

which deserves to be explored. Banten Province is

located in the westernmost region of Java Island.

Banten has lots of natural attractions and cultural and

religious tourism areas.

Table 1: The Number of Serang City’s Tourist 2016-2019

Year International

Tou

ist

Domestic

Tou

ist

Total

2016 788309.117 309.905

2017 98862.225 862.323

2019 63112.789.777 12.790.408

Source: BPS of Serang City 2020 (data processed)

In 2019, 12.790.408 tourists were visiting the city

of Serang (the capital city of Banten Province), both

foreign and domestic tourists. 2016-2019 tourist visits

can be seen in Table 1. The table shows that there was

an increase in the number of tourists. There were

309.905 visits in 2016, 862.323 visits in 2017, and

12.790.408 visits in 2019.

One of the Banten’s interesting tourist icons is

the Banten Lama Area, located in the Kasemen sub-

district, Serang city. In this area, there are several

tourist destinations that can be visited by tourists,

including the remains of the Surosowan Palace,

Kaibon Palace, and Spellwijk Fortress. In the area,

there are also the Banten Archaeological Museum,

Banten Grand Mosque, and Vihara Avalokitesvara.

Banten Province has been established since 2000,

but it was only in 2018 that the Banten government

began to revitalize the historic tourism area of Banten

Lama. The local government has prepared a budget

of Rp. 220 billion for this revitalization project. Since

2018, the Banten provincial government and the

Public Housing and Settlement Service (PERKIM)

have begun to organize the Banten Lama Area

Arrangement (Phase I). This arrangement includes

the arrangement of the mosque area, the construction

of the mosque plaza, the museum plaza, the

amphitheater, and the Surosowan Bull Park.

In 2019, Public Housing and Settlement Services

Office (PERKIM) organized the area around Banten

Lama, namely the Speilwijk Fortress, Kaibon Palace,

the Pacinan Mosque area, and the mosque area

Sultanate of Banten.

The development of tourism and culture in the

Banten Lama area has a strategic meaning. This

tourism sector is expected to generate income for the

Banten government, and support the development of

Utami, F., Arisondha, E. and Wahyudi, T.

The Effect of Price, Promotion, and Location to the Interest of Tourist to Revisit Banten Lama.

DOI: 10.5220/0010355700630070

In Proceedings of the 2nd International Conference on Applied Economics and Social Science (ICAESS 2020) - Shaping a Better Future Through Sustainable Technology, pages 63-70

ISBN: 978-989-758-517-3

regional development, improving the community

welfare. The construction of the Banten souvenir

center can be utilized by Small Medium Enterprises

(SMEs) to promote and sell their products so that the

visitors are not only pilgrimages and enjoying the

beauty of the Banten Sultanate Area.

Related to the marketing system, the Banten

provincial government has implemented a price,

promotion, and location strategy.

Price can be one of the reasons for whether the

products offered are sold or not. Incorrectly

determining the price will certainly have fatal

consequences for the products being offered and result

in the product not being sold in the market. Yuan et al.

(2019) found a relationship between price and

customer satisfaction.

Promotional factors can also influence consumer

behavior in making purchasing decisions. Promotion

is when the companies inform and remind the

consumers about the products they sold (Kotler &

Keller, 2009). Marketing communication is a

marketing activity that seeks to influence the target

market for the company and its products to be willing

to purchase and loyal to the products (Tjiptono, 2012).

Some previous researchers made a study about

price, promotion, location, and buyer decision. The

study’s findings are varied. Mahmudah (2019) stated

that promotion has a positive effect on the desire to

revisit the tourism object. Walukow and Mananeke

(2014) examined the effect of the product, promotion,

price, and location on the consumer purchasing

decisions at the Minahasa Sonder Center Bentenan.

The results showed that those variables had a

significant positive effect on consumer purchasing

decisions.

Then, Fure (2013) found that location, price,

product, and service give effect to the interest of the

buyer in Bersehati Traditional Market. In another

study, Brata et al. (2017) found that the product,

price, location, and promotion influence the

purchasing decision, partially and simultaneously.

Location or place factor for each business is an

important task for marketers because a wrong decision

can lead to decision making that can fail before the

business starts. Site selection has a strategic function

because it can participate in determining the

achievement of the goals of the business entity. The

location is easy to reach by consumers, and close to

the crowd is the right location for business.

Sianipar (2020) stated that the price has a

significant effect on the interest in visiting back to

Lake Toba, the location has a significant effect on

the interest in visiting back to Lake Toba and

simultaneous product, price, location, and promotion

have a significant effect on the interest of visiting

Lake Toba again.

However, Arifin (2019) study found that prices

influence the interest of tourists in Sine Beach, but

promotion does not affect the interest. Then, the

location influences tourists interest in Sine

Tulungagung Beach. Simultaneously, promotions,

prices, and locations give effect to the tourists’

decision in Sine Beach. Then, Matzler (2019) finds

that the repeat visitors’ world of mouth is not

influenced by prices.

Those previous researches are varied. Therefore,

the purpose of this research is to identify the effect

of the price, promotion, and location strategies and

its influence on interest in returning to revisit the

Banten Lama Tourism Area.

2 LITERATURE REVIEW AND

HYPOTHESES

2.1 Revisit the Tourism Object

Customer satisfaction is the most important priority

(Brata et al., 2019). The decision to visit a tourism

object again is basically closely related to consumer

behavior. Consumers who still have an interest in

tourist objects will certainly come back to these

attractions.

2.2 Price, Promotion, and Location

After determining the target market and the position

of the desired product in the minds of consumers,

the company needs to design a program so that the

product can get a response from the target market.

Marketing makes individuals or groups get what

they need and want by offering products of value to

other parties (Shinta, 2011).

2.2.1 Price

Price can be one of the reasons for whether the

products offered are sold or not. The price of a good

or service is a determinant of market demand.

Incorrectly determining the price will certainly have

fatal consequences for the products being offered and

result in the product not being sold in the market.

According to Kasmir (2015), pricing by a

company is intended with various objectives to be

achieved. The objectives of pricing, in general, are

as follows: to survive, maximize profits, increase

market share, show high product quality.

ICAESS 2020 - The International Conference on Applied Economics and Social Science

Pricing decisions are quite complex and difficult

problems in a company. Pricing is a critical decision

that supports the success of both profit, and non- profit

organizations and this decision is not easy to make. On

the other hand, a too high price can quickly increase

short-term profits, but on the other hand, it will be

difficult for consumers to reach. Conversely, if the

price is too low, the market share can soar, but the

contribution margin and net profit obtained will

decrease. Besides, some consumers may perceive the

quality is bad.

The amount of price that must be installed is of

course adjusted to the purpose of determining the

price. There are three basic strategies in pricing,

namely: skimming pricing, penetration pricing, and

status quo pricing. Skimming pricing is by setting

the highest initial product price with the aim that the

product or service is of high quality. Penetration

pricing is by setting the lowest possible price with

the aim of dominating the market. Then, in the status

quo pricing, the price is set according to competitor

prices.

2.2.2 Promotion

In managing a marketing communication system, it

requires a strategy design and sales programs that

are effective and efficient. Sales promotion is a key

element in corporate campaigns, and the best

promotions are promotions carried out by satisfied

customers. Thus, promotion needs to be carefully

handled because we have to manage how much costs

are incurred for this cost, which must be adjusted to

its conditions and capabilities (Arifin, 2019).

2.2.3 Location

Location means relating to where the company must

work and carry out its business activities. Sulistiyana

(2015) states that facilities are tools which support

the operation of tourism object to accommodate all the

needs of tourists.

According to Elliott et al. (2012), the location is

the company’s activity to deliver products or services

that are available to consumers at the right time and

place. Through the places, then a company can put the

products/services to be reached by the target

customers (Brata et al., 2017) taken. The samples

used in this study are tourists who intend to visit

again. The sample in this study was taken randomly

with a total of 100 respondents.

2.3 Research Framework and

Hypothesis

Tjiptono (2005) stated that the marketing mix is a set

of tools that marketers could use to shape the

characteristics of the consumers service. This shows

that if the marketing mix strategy is implemented

properly, it will affect interest in returning to visit.

Most previous research finds a relationship

between price, promotion, location, and interest in

returning to visit. With a good community mix

strategy, it is hoped that interest in visiting again will

increase.

The framework of this research can be described

as follows:

Figure 1: Research Framework

Based on Figure 1, the theoretical framework can

be explained that the marketing mix can influence

the interest in returning to visit either partially or

simultaneously.

Based on the framework above, the authors

propose the following hypothesis:

: Price, promotion, and location simultaneously

have a significant effect on revisit interest

: Price, promotion, and location partially have a

significant positive impact on revisit interest.

3 RESEARCH METHODOLOGY

This study uses a causal design. Causal design is

useful for measuring the relationship between

variable X and variable Y where the dependent

variable (variable Y) is explained or influenced by a

certain independent variable (variable X).

In this study, the population is classified as all

tourists who have visited the tourist area of Banten

Lama at least one time. The type of sample used in

this research is purposive sampling, which means

that the researcher determines the sample to be

taken. The samples used in this study are tourists who

The Effect of Price, Promotion, and Location to the Interest of Tourist to Revisit Banten Lama

intend to visit again. The sample in this study was

taken randomly with a total of 100 respondents.

Measurement of variables in this study was carried

out by measuring each question item. The

measurement scale uses a Likert scale with 5 intervals.

The measurement intervals are:

Strongly Disagree: 1

Disagree: 2

Neutral: 3

Agree: 4

Strongly Agree: 5

This research is using a quantitative descriptive

study. Data is collected by surveys, questionnaires,

and literature review. The data collection method in

this research is done by distributing a questionnaire.

The questionnaire is a list of questions that are

relevant to research variables aimed at research

subjects or respondents.

Multiple Linear Regression is used to determine

the magnitude of the indirect effect of the moderating

effect of the training and work motivation variables on

the work productivity variable. The regression

equation is as follows:

(1)

Note:

Y = Revisit Interest

b = Regression Coefficient

X = Price, Promotion, Location

The coefficient of determination (R

) shows the

percentage effect of all independent variables on the

dependent variable. The value of R

differs from 0 to

1. The closer to 1, the independent variable almost

provides all the information to predict the dependent

variable or is an indicator that shows the stronger

ability to explain changes in the independent variable

to the dependent variable.

F test (simultaneous test) aims to determine how

far all the independent variables together can

influence the dependent variable. In other words, the

F test is used to test whether together (simultaneously)

the independent variables affect the dependent

variable. In this study, the F test was carried out to

determine the regression coefficient of the

independent or independent variable on the dependent

variable. The steps that must be taken are: a. Create a

hypothetical formula

Ho: This means that there is no significant effect of

the simultaneous independent variables on the

dependent variable.

Ha: This means that there is a significant effect of

the simultaneous independent variables on the

dependent variable.

b. 95% confidence level or 5% significance c. Make

a conclusion

•

is rejected if the F value is < 0.05: it means that

the independent variable (X) simultaneously has

a significant effect on the dependent variable (Y).

•

is accepted if the value of F value > 0.05: it

means that the independent variable (X)

simultaneously does not have a significant effect

on the dependent variable (Y).

Testing the effect of independent variables

independently is carried out to see the significance

of the influence of the independent variables to the

dependent variable, by assuming the other

independent variables are fixed. The t-test is the value

of the regression coefficient, which shows the

closeness of the partial effect of each independent

variable on the dependent variable. The steps that

must be taken are:

a. Create a hypothetical formula

Ho: This means that there is no significant effect

of the individual (partial) independent

variables on the dependent variable.

Ha: This means that there is a significant effect of

the individual (partial) independent variables

on the dependent variable.

b. 95% confidence level or 5% significance

c. Make a conclusion

• H

is rejected if the F value is < 0.05: it means that

the independent variable (X) partially has a

significant effect on the dependent variable

(Y).

• H

is accepted if the value of F value > 0.05: it

means that the independent variable (X)

partially have no significant effect on the

dependent variable (Y).

Multiple linear regression models can be called a

good model if the model meets the data normality

assumptions and is free from the classical statistical

assumptions of normality, multicollinearity,

heteroscedasticity, and autocorrelation.

a. Normality Test

This normality test is carried out to determine

whether the dependent variable, independent

variable, or both, is normally distributed, is close to

normal, or not.

The normality test in this study was carried out by

the Kolmogorov - Smirnov method.

b. Heteroscedasticity Test

Heteroscedasticity tests the difference in the residual

variance of one observation to another observation

period. To predict the presence or the absence of

heteroscedasticity in a model, we could see the

Scatterplot image pattern, a regression that does not

occur heteroscedasticity if:

ICAESS 2020 - The International Conference on Applied Economics and Social Science

1. Data points cross above and below or around the

2. Data points don't cluster just above or below, and

3. The spread of data points should not form a wavy

pattern that widens then narrows and widened

again.

4 RESULTS AND DISCUSSION

Respondents as subjects are tourists who have visited

the Banten Lama Tourism Area at least 1 (one)

time. The object in this study is the tourist interest in

returning to the Banten Lama tourism object. The

sample in this study was taken randomly, with a total

of 100 respondents.

4.1 Classical Assumption Test

4.1.1 Normality Test

Table 2: Kolmogorov-Smirnov Test Result

Description Unstandardized

Residual

ormal

Parameters

a,b

Mean .0000000

Std. Dev 1.76498259

Most Extreme

Differences

Absolute .065

Positive .065

egative -.042

Test Statistic

.065

. Si

(

2-tailed

)

.200

c,d

Source: Primary Data Processed, 2020

Based on the results of the normality test above,

it can be concluded that the research data for each

variable is normally distributed because it has a

significant value of 0.200 which is greater than 0.05.

4.1.2 Heteroscedasticity Test

Based on Figure 2, it can be seen that there is no clear

pattern in the scatterplot graph. In addition, the

points spread above and below the number 0 on the Y

axis, so it can be concluded that there is no

heteroscedasticity in the regression model.

Figure 2: Heterokedasticity Test Result

4.2 Multiple Linear Regression

4.2.1 F Test

Table 3: Regression Test Result

Model

Sum of

Squa

Mean

Square

F Sig

Regression 285.676 3 95.225 29.422 .000

Residual 249.213 77 3.237

Total 534.889 80

a. De

endent Va

le: Re

isit Inte

est

.Predicto

(

Constant

)

omotion, P

ice, Location

Source: Primary Data Processed, 2020

Based on Table 3, it can be seen that the

significance value is 0.000 <0.05, so from the results

of this calculation, it is concluded that it is proven

that the independent variables (price, place, and

promotion) have a simultaneous effect on the

dependent variable (interest to revisit the tourism

object).

4.2.2 T Test

Table 4: Coefficients

Model

Unstandardized

Coefficients

Stand.

Coef.

t Sig.

Std. Error

Beta

Constant 1.50 1.683

.89 .37

Price .274 .104 .220 2.6 .01

Place .308 .108 .283 2.8 .00

Promotion

.440 .103 .414 4.3 .00

a. De

endent Va

le: Re

isit Inte

Source: Primary Data Processed, 2020

Table 4 shows that:

a. The significance value of Price is 0.010 <0.05,

and it can be concluded that partially the Price

variable has a significant effect on Interest to

Revisit.

The Effect of Price, Promotion, and Location to the Interest of Tourist to Revisit Banten Lama

b. The significance value of Place is 0.006 <0.05, it

can be concluded that partially the Place variable

has a significant effect on Interest to Revisit.

c. The promotion significance value is 0.000 <0.05,

and it can be concluded that partially the Product

variable has a significant effect on Interest to

Revisit.

4.2.3 The Amount of Simultaneous (R

) and

Partial Influence (r

)

Table 5 shows the model summary of the

simultaneous amount. The table shows that the

predictors in this study are promotion, price, and

location. Those are the independent variables.

The dependent variable in this study (that showed

in Table 5) is the Interest to Revisit Banten Lama.

Based on Table 5, it is known that simultaneously the

magnitude of the influence of the X variable (Price,

Place, and Promotion) on Y variable (Interest in

Revisiting) is 51.6%.

Table 5: Model Summary

Square

Adjusted

R Square

Std. Error of the

Estimate

Adjusted R

Square*100

.534 .516 1.799 51,6%

Source: Primary Data Processed, 2020

The amount of influence partially can be seen in

the following table 6:

Table 6: Coefficients

Model Correlations

*100

Zero

order

tial Part

Constant

ice

.437

.287

.205

0.082

8,2%

Place

.606

.308 .221

0.095

9,5%

Promotion

.643

.439 .333

0.193

19%

Source: Primary Data Processed, 2020

Table 6 shows that the independent variable,

which has a dominant influence on the dependent

variable, is the promotion variable with the magnitude

of 19.27%.

4.3 Discussion

The results of this study support the second hypothesis

that price has a significant positive effect on the

interest of tourists to revisit the Banten Lama Tourism

Area, Serang City. The result of this study are

consistent with research conducted by Yuan et al.

(2019) stated that there is a direct relationship

between price and customer satisfaction. Alvianna et

al. (2020) also study the effect on customer

satisfaction. The research found that the perception

of tourists felt has a positive impact.

This study also finds that promotion has a positive

effect on the interest of tourists to revisit the Banten

Lama Tourism Area, Serang City. Then, location has

a positive effect on the interest of tourists to revisit

the Banten Lama Tourism Area, Serang City. These

findings are consistent with research conducted by

Mahmudah (2019), who found that promotion has a

positive effect on the desire to revisit the tourism

object. Furthermore, the other study that consistent

with this study result is the study from Sianipar

(2020) that did research about the influence of

product, price, location and tourism promotion on the

interest of visiting Lake Toba tourism. He stated that

the conclusion of the research is that the product

has a significant effect and is the dominant variable

that influences the interest in returning to Lake Toba,

the price has a significant effect on the interest in

visiting back to Lake Toba, the location has a

significant effect on the interest in visiting back to

Lake Toba, Toba and simultaneous product, price,

location, and promotion have a significant effect on

the interest of visiting Lake Toba again. This can be

concluded that the hypothesis in this study, namely

price, promotion, and location has a significant

positive effect on the Interest in Revisit to Banten

Lama can be accepted and proven true. In addition,

Zainab (2018) found that the better pricing strategy

applied, the existence of the object, and the level of

promotion made will increase the decision of people

to stay at the hotel. In addition, Sandrio et al. (2020)

stated that the destination image does not affect

loyalty directly.

The destination image influences loyalty through

tourist satisfaction. In Banten Lama, the government

has been building a lot of infrastructure and tourist

attractions. It shows the government realizes that the

existence of tourist attractions is significant in

creating the image of the tourism area. The

government is still giving updated information to the

customers by media and continue to maintain historic

places and build good facilities in the Banten Lama.

5 CONCLUSION

The results of the study support the hypotheses. Price,

location, and promotion simultaneously has a

significant effect on the interest to revisit the Banten

Lama tourism object. The magnitude of the effect of

ICAESS 2020 - The International Conference on Applied Economics and Social Science

simultaneous price, location and promotion on interest

to revisit is 51.6%.

Then, price, location, and promotion partially have

a significant positive impact on revisit interest. Price

has a significant effect on the interest to revisit Banten

Lama area. The amount of influence is

8.23%. Location has a significant effect on interest

to revisit Banten Lama. The amount of influence is

9.48%. After that, promotion has a significant effect

on interest to revisit Banten Lama. The amount of

influence is 19.27%.

Recommendations for strategies to increase the

interest to revisit Banten Lama tourism area include:

the local government should pay attention to price,

place, and promotion factors for visitors. The

government should increase the services, facilities,

and updated information to the customers by media

and continue to maintain historic places.

The study was conducted only in limited areas of

Banten. This work can be extended further by

involving more of the tourism areas of Indonesia so

that the actual figure of revisit decision can be found.

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