The Effect of Product Quality and Service Quality on Purchasing Decisions Through Corporate Image as Mediation Variable

Frederico Correia Maia; Estanislau de Sousa Saldanha; Belandia Graciana

doi:10.51703/bm.v5i0.114

Frederico Correia Maia Master of Business Administration (MBA) Program, Dili Institute of Technology, Timor-Leste
Estanislau de Sousa Saldanha Senior Lecture Master of Business Administration (MBA) Program, Dili Institute of Technology, Timor-Leste
Belandia Graciana Lecture Master of Business Administration (MBA) Program, Dili Institute of Technology (DIT), Timor-Leste

DOI: https://doi.org/10.51703/bm.v5i0.114

Keywords: Product quality, service quality, Corporate image, purchasing decision

Abstract

This research has three main objectives: (1) to test the impact of product and service quality, and corporate image on purchase decision, (2) to examine the effect of product and service quality on corporate image, and (3) to test the mediating role of corporate image on the relationship between product and service quality, and purchase decision. The study was conducted at Timor-Telecom company in Dili, Timor-Leste, with a total of 399 participants, and SMART-PLS 3.0 was used to test the hypotheses. The findings of this study reveal that product quality, service quality, and corporate image have a positive and significant influence on purchase decision. Product and service quality also positively influence corporate image. Moreover, corporate image has a significant media ting effect on the relationship between product and service quality, and customer purchasing decision . The results of this research suggest that companies can enhance their business performance by focusing on improving product and service quality to build apositive corporate image, which, in turn, can increase customer purchasing decisions in the dynamic changes of the telecommuni cation industry environment in Timor-Leste.

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