The influence of store atmosphere and promotions on purchase decisions through perceived value in the fashion category at Ramayana department store in Jakarta

 Corresponding author: Avrilla Diva Malika Copyright © 2025 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution License 4.0. The influence of store atmosphere and promotions on purchase decisions through perceived value in the fashion category at Ramayana department store in Jakarta Avrilla Diva Malika * and Widayanto Department of Business Administration, Faculty of Social and Political Science, Diponegoro University, Semarang, Indonesia. World Journal of Advanced Research and Reviews, 2025, 28(01), 683-695 Publication history: Received on 01 September 2025; revised on 06 October 2025; accepted on 09 October 2025 Article DOI: https://doi.org/10.30574/wjarr.2025.28.1.3492 Abstract The retail industry in Indonesia has shown rapid growth, particularly within the fashion retail sector. This development is marked by the rising and evolving consumer demand for fashion products. Ramayana Department Store, as a key player in the fashion retail market, is currently facing intense competition from various companies offering similar goods. Despite its strong presence, Ramayana has experienced a notable decline in sales and has not yet regained its previous performance level. This study seeks to examine the influence of store atmosphere and sales promotion on consumers' purchase decisions in the fashion category at Ramayana Department Store Jakarta, with perceived value as a mediating variable. A quantitative, explanatory research design was employed, utilizing a questionnaire distributed to 97 respondents selected through purposive non-probability sampling. Data analysis was conducted using Structural Equation Modeling-Partial Least Squares (SEM-PLS) via SmartPLS 4.0. The analysis involved outer and inner model testing to assess construct validity and the relationships among variables. The findings reveal that both store atmosphere and sales promotion significantly and directly influence perceived value and purchase decisions. Additionally, these variables also exert an indirect effect on purchase decisions through perceived value, which serves as a partial mediator. The study suggests areas for improvement at Ramayana, including optimizing store layout and product presentation, strengthening promotional efforts, enhancing value for money, aligning product quality with consumer expectations, adapting to current fashion trends, and expanding online sales channels to improve accessibility. Keywords: Store Atmosphere; Sales Promotion; Perceived Value; Purchase Decision 1. Introduction The retail industry in Indonesia, particularly in major urban centers such as Jakarta, is characterized by intense competition. The presence of numerous players, ranging from traditional to modern retail formats, necessitates continuous innovation by each company to maintain competitiveness. According to a report by Euromonitor International (2023), the Indonesian retail market is projected to experience a Compound Annual Growth Rate (CAGR) of 6% through the year 2025. World Journal of Advanced Research and Reviews, 2025, 28(01), 683-695 684 Table 1 Retail Market Growth Data in Indonesia Year Retail Market Value (Trillion IDR) Growth (%) 2020 2500 4,5 2021 2600 4,0 2022 2750 5,8 2023 2900 5,5 2024 3100 6,0 2025 3300 6,5 Source : Euromonitor International, 2024 Based on the table above, the retail market in Indonesia has shown growth from 2020 and is projected to continue rising until 2025. This indicates significant potential for businesses in Indonesia, as consumers consistently purchase products to meet their daily needs. Table 2 Top Brand Index of Department Store Category No Brand 2020 2021 2022 2023 2024 1 Matahari 50.70% 52.50% 51.70% 51.80% 50.50% 2 Ramayana 12.70% 14.10% 14.60% 15.90% 14.00% 3 Toserba Yogya 3.90% 3.60% 3.80% 3.80% 8.70% Source : topbrand-award.com, 2024 Table 2. shows that Ramayana has consistently ranked second among Top Brands in Indonesia's retail sector over the past five years. However, in 2024, Ramayana experienced a decline, with its Top Brand Index (TBI) falling by 14%. This decline indicates the presence of factors influencing consumer purchase decisions that may not have been fully addressed by Ramayana. Purchase decision refers to the process consumers go through when deciding to buy a product or service (12). It is a common action taken by consumers to acquire a product. Purchase decision is an understanding in which consumers recognize their desires and needs for a product, evaluate various influencing factors, identify alternatives, and make a decision to purchase, followed by post-purchase behavior (16). Source : databoks.katadata.co.id (2022) Figure 1 Revenue and Profit/Loss of Fashion Retail Companies Based on data collected from the Indonesia Stock Exchange (IDX), it can be observed that in the first semester of 2022, Mitra Adiperkasa (MAP) led in terms of revenue, recording IDR 12,248 billion. MAP also reported the highest profit, World Journal of Advanced Research and Reviews, 2025, 28(01), 683-695 685 amounting to IDR 1,031 billion. This was followed by Matahari, with revenue of IDR 3,762 billion and a profit of IDR 918.37 billion. At the bottom was Ramayana, with revenue of IDR 1,856 billion and a profit of IDR 286.03 billion. From the presented statistical data, it can be concluded that Ramayana lags behind in competition compared to MAP and Matahari. Table 3 Target and Actual Performance Data of Ramayana Department Store Year Target (Trillion) Actual (Trillion) Achievement (%) 2019 Rp5.036.758 Rp5.596.398 111 2020 Rp6.156.038 Rp2.527.951 41 2021 Rp2.907.144 Rp2.592.682 89 2022 Rp3.089.292 Rp2.996.613 97 2023 Rp3.296.274 Rp2.744.427 83 Source : Analyzed Data, 2024 Based on table 3, it can be observed that Ramayana experienced a significant decline in sales in 2020 due to the COVID19 pandemic. However, up to the present, Ramayana has not yet been able to recover to its previous performance levels. Annual sales remain unstable and have yet to meet the sales targets. Store atmosphere and sales promotion are complementary marketing strategies that influence consumer perceived value and purchasing decisions. A comfortable, attractive store atmosphere invites customers to stay longer and feel happy, while sales promotions provide extra incentives to buy. Together, they enhance positive consumer perceptions, boosting sales volume and customer loyalty. As of 2023, Ramayana Department Store operates 101 outlets across 54 cities in Indonesia. However, Ramayana’s inability to compete effectively in the fashion retail market has led to significant losses at several outlets, forcing their closure to ensure the company’s sustainability. Table 4 Ramayana Department Store Outlet Data 2020 2021 2022 2023 Summary Jakarta 17 14 13 13 4 outlet decreased Bogor, Depok, Tangerang, Bekasi 28 28 27 26 2 outlet decreased West Java 9 9 10 10 1 outlet added Central Java 7 7 8 8 1 outlet added East Java 11 10 10 10 1 outlet added Sumatera 18 20 19 18 2 outlet added, then 2 outlet decreased Kalimantan 7 7 7 7 Same amount Sulawesi 3 3 3 3 Same amount Bali 2 2 2 2 Same amount Nusa Tenggara 1 1 1 1 Same amount Maluku 1 1 1 1 Same amount Papua 2 2 3 3 1 outlet added Source : Analyzed Data, 2024 Based on the table above, it can be concluded that over the past four years, Jakarta has experienced the highest number of outlet closures due to losses and inability to sustain competition. Considering the background presented, it is evident World Journal of Advanced Research and Reviews, 2025, 28(01), 683-695 686 that Ramayana has faced a decline in sales and has yet to meet its business targets. Efforts such as improving store atmosphere and implementing sales promotions have been undertaken to enhance perceived value as a strategy to compete and boost sales. 2. Material and Methods 2.1. Consumer Behavior Consumer Behavior refers to the study of how individuals make decisions to spend their available resources—time, money, and effort—on consumption-related items (15). It involves the processes consumers use to recognize needs, gather information, evaluate alternatives, make purchasing decisions, and assess post-purchase experiences. Consumer behavior is influenced by four main factors: cultural (values, subcultures, traditions), social (reference groups, family, social class), personal (age, occupation, lifestyle, economic conditions, personality), and psychological (motivation, perception, learning, and attitudes). These factors interact to shape consumer preferences, perceptions, and responses to marketing stimuli, ultimately determining purchasing patterns. In this study, consumer behavior is considered a key foundation for analyzing purchase decisions, as it reflects how external influences and internal characteristics drive consumer choices in the retail fashion context. 2.2. Purchase Decisions Purchase Decision refers to the consumer’s process of choosing whether or not to buy a product, including the selection of brand, quantity, purchase time, distribution channel, and payment method (15). The decision-making process generally follows five stages: need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase evaluation. Purchase decisions are influenced by cultural, social, personal, and psychological factors (15), and can be measured through indicators such as product choice, brand choice, distributor choice, purchase timing, purchase quantity, and payment methods. 2.3. Perceived Value Perceived Value is defined as the consumer’s overall assessment of the utility of a product based on the trade-off between what is received and what is given (16). It plays a key role in determining consumer preferences and purchase behavior. According to Sweeney and Soutar (2001), perceived value can be assessed through four indicators: emotional value, performance/quality value, social value, and value for money. 2.4. Store Atmosphere Store Atmosphere represents the environment created by retailers to enhance consumer shopping experiences and influence purchase behavior. It encompasses both interior and exterior elements, such as lighting, layout, aroma, music, and visual merchandising (15, 6). Indicators of store atmosphere include store exterior, general interior, store layout, and interior display. 2.5. Sales Promotion Sales Promotion refers to short-term incentives designed to stimulate consumer purchases (15). Effective sales promotions can increase sales volume, shift consumer purchase behavior, strengthen brand awareness, and foster customer loyalty. Indicators include sales increase, changes in consumer buying patterns, brand awareness and recall, customer loyalty, distribution channel effectiveness, and consumer perception of promotional value. 2.6. Research Method This study employs an explanatory quantitative approach to examine the influence of store atmosphere and sales promotion on purchase decisions, mediated by perceived value. The sample consists of 97 respondents—men and women aged 15–64 who have made fashion purchases at Ramayana Department Store in Jakarta and experienced promotional activities—selected using a non-probability purposive sampling method. The research utilizes primary data collected through a Likert scale questionnaire (scale 1–5), designed to measure constructs with multiple indicators. Hypothesis testing is conducted using Structural Equation Modeling (SEM) with the SmartPLS 4 software. SEM is applied to assess both direct and indirect relationships between latent variables, with PLS used to predict and validate theoretical constructs. The model evaluation involves two main stages: the outer model, assessing convergent validity, discriminant validity, and composite reliability; and the inner model, evaluating the structural path significance using R-square, F-square, and bootstrapping for t-test analysis. Intervening effects of perceived value are also analyzed through indirect effect testing via SmartPLS bootstrapping. World Journal of Advanced Research and Reviews, 2025, 28(01), 683-695 687 Figure 2 Model Hypothesis H1 : There is a suspected influence of Store Atmosphere on Perceived Value among fashion category consumers at Ramayana Department Store in Jakarta. H2 : There is a suspected influence of Sales Promotion on Perceived Value among fashion category consumers at Ramayana Department Store in Jakarta. H3 : There is a suspected influence of Perceived Value on Purchase Decision among fashion category consumers at Ramayana Department Store in Jakarta. H4 : There is a suspected influence of Store Atmosphere on Purchase Decision among fashion category consumers at Ramayana Department Store in Jakarta. H5 : There is a suspected influence of Sales Promotion on Purchase Decision among fashion category consumers at Ramayana Department Store in Jakarta. H6 : There is a suspected influence of Store Atmosphere on Purchase Decision mediated by Perceived Value among fashion category consumers at Ramayana Department Store in Jakarta. H7 : There is a suspected influence of Sales Promotion on Purchase Decision mediated by Perceived Value among fashion category consumers at Ramayana Department Store in Jakarta. 3. Results 3.1. Evaluation of Measurement Model (Outer Model) Measurement model or outer model refers to the relationship between latent construct and each indicator block that measures them. Source: Data Processed using Smart-PLS, 2025 Figure 3 Diagram Path Analysis World Journal of Advanced Research and Reviews, 2025, 28(01), 683-695 688 3.1.1. Convergent Validity The initial stage of this study involved testing the indicators within the model to ensure that convergent validity met the established standards. Correlation is considered to have achieved convergent validity if the loading factor value >0.70 and the Average Variance Extracted (AVE) is >0.50 (10). Table 5 Outer Loading Result Indicators Variable Loading Factor Type (as defined) Notes SA1 Store Atmosphere 0.792 Reflective Valid SA2 0.905 Reflective Valid SA3 0.873 Reflective Valid SA4 0.758 Reflective Valid SP1 Sales Promotion 0.851 Reflective Valid SP2 0.896 Reflective Valid SP3 0.857 Reflective Valid SP4 0.771 Reflective Valid PV1 Perceived Value 0.711 Reflective Valid PV2 0.819 Reflective Valid PV3 0.836 Reflective Valid PV4 0.820 Reflective Valid PD1 Purchase Decision 0.850 Reflective Valid PD2 0.768 Reflective Valid PD3 0.780 Reflective Valid PD4 0.866 Reflective Valid PD5 0.806 Reflective Valid PD6 0.701 Reflective Valid Source: Data Processed using Smart-PLS, 2025 Based on the test results in table 5, it can be observed that all items for each variable exhibit loading factor values >0.70. Therefore, it can be concluded that each item adequately represents the latent variable it measures. The higher the loading factor value, the stronger the relationship between the item and the respective latent variable. Table 6 Average Variance Extracted (AVE) Average Variance Extracted (AVE) Store Atmosphere (SA) 0.635 Sales Promotion (SP) 0.637 Perceived Value (PV) 0.696 Purchase Decision (PD) 0.714 Source: Data Processed using Smart-PLS, 2025 Based on table 6, the AVE values obtained for each variable are >0.50. This indicates that each item is able to explain more than 50% of the variance in the latent variable it represents. An AVE value above 0.50 is considered a good indication of convergent validity, meaning that the items are effective in measuring the latent variable. World Journal of Advanced Research and Reviews, 2025, 28(01), 683-695 689 3.1.2. Discriminant Validity Discriminant validity is evaluated using two main methods, the Fornell-Larcker criterion and cross-loading analysis. The Fornell-Larcker approach compares the square root of the Average Variance Extracted (AVE) with the correlations between constructs, discriminant validity is confirmed if the AVE root is greater than the correlations. Cross-loading analysis checks whether each indicator loads highest on its own construct compared to others, indicating adequate discriminant validity. Table 7 Fornell-Larcker PD PV SA SP PD 0.797 PV 0.654 0.798 SA 0.487 0.480 0.834 SP 0.618 0.466 0.354 0.845 Source: Data Processed using Smart-PLS, 2025 The analysis results indicate that the square roots of the AVE values for each construct (PD = 0.797; PV = 0.798; SA = 0.834; SP = 0.845) are higher than the correlations between the constructs. This demonstrates that each construct in the model meets discriminant validity, clearly measuring distinct concepts. Table 8 Cross Loadings PD PV SA SP PD1 0.850 0.505 0.379 0.615 PD2 0.768 0.445 0.368 0.492 PD3 0.780 0.488 0.305 0.438 PD4 0.866 0.522 0.421 0.545 PD5 0.806 0.625 0.462 0.492 PD6 0.701 0.529 0.381 0.344 PV1 0.476 0.711 0.319 0.347 PV2 0.421 0.819 0.338 0.259 PV3 0.591 0.836 0.527 0.391 PV4 0.564 0.820 0.316 0.461 SA1 0.358 0.386 0.792 0.316 SA2 0.491 0.408 0.905 0.349 SA3 0.440 0.401 0.873 0.283 SA4 0.319 0.412 0.758 0.228 SP1 0.510 0.419 0.281 0.851 SP2 0.554 0.351 0.292 0.896 SP3 0.553 0.418 0.321 0.857 SP4 0.467 0.385 0.303 0.771 Source: Data Processed using Smart-PLS, 2025 Based on the data presented in table 8, it can be seen that each measurement item has a higher cross-loading value and shows a stronger correlation with its respective variable compared to other variables. For example, the cross-loading World Journal of Advanced Research and Reviews, 2025, 28(01), 683-695 690 value of item PD1 on the PD variable is 0.850, while on the PV, SA, and SP variables it is 0.505, 0.379, and 0.615, respectively. This demonstrates that PD1 is more dominant in measuring the PD variable itself than the others. Therefore, it can be concluded that the discriminant validity criteria have been met. 3.1.3. Composite Reliability Reliability testing in this study was conducted using two main indicators: composite reliability and Cronbach’s alpha. These measures assess how consistently and accurately the indicators reflect their respective constructs. Cronbach’s alpha evaluates internal consistency among items, while composite reliability assesses overall construct reliability. A construct is considered reliable if both values >0.70 otherwise, it is deemed unreliable. Table 9 Composite Reliability and Cronbach’s Alpha Cronbach's Alpha Composite Reliability (rho_c) PD 0.884 0.912 PV 0.810 0.875 SA 0.852 0.901 SP 0.866 0.909 Source: Data Processed using Smart-PLS, 2025 Based on Table 3.5, all variables in this study (PD, PV, SA, and SP) have Cronbach’s Alpha and Composite Reliability values above 0.70. This indicates that all constructs in the model demonstrate a high level of reliability, meaning the indicators for each variable can be considered reliable. 3.2. Evaluation of Structural Model (Inner Model) Inner model or structural model testing is used to predict the relationship that occurs between variables in a research model. This inner model test includes testing the coefficient of determination (R-Square). Table 10 R-square Result R-square Store Atmosphere and Sales Promotion -> Purchase Decision 0.572 Store Atmosphere and Sales Promotion -> Perceived Value 0.331 Source: Data Processed using Smart-PLS, 2025 Based on the table above, there are two endogenous (dependent) variables in this research model that are influenced by exogenous (independent) variables, there is purchase decision with an R-square value of 0.572 and perceived value with an R-square value of 0.331. The test results indicate that store atmosphere and sales promotion contribute 57.2% to purchase decision, while the remaining 42.8% is influenced by other variables not included in this study. Meanwhile, store atmosphere and sales promotion account for 33.1% of the perceived value, with the remaining 66.9% influenced by other external variables. According to Ghozali (2020), research models can be categorized as strong (≥ 0.75), moderate (0.26–0.74), and weak (≤ 0.25). Based on this classification, the R-square values for purchase decision (0.572) and perceived value (0.331) fall into the moderate category. 3.3. Hypothesis Test The hypothesis testing in this study was conducted using the bootstrapping method through the SmartPLS version 4.0 statistical software. This method is used to assess the magnitude of both direct and indirect effects between variables. The hypothesis testing process was carried out in two stages: evaluation of the direct effect and evaluation of the indirect effect. In this analysis, the evaluation criteria include: • T-Statistics > 1.96 indicates a significant relationship at a 5% significance level (α = 0.05). • P-Values < 0.05 also indicate a significant relationship at the 5% significance level (α = 0.05). World Journal of Advanced Research and Reviews, 2025, 28(01), 683-695 691 If the t-statistic value exceeds the critical value from the t-table, it can be concluded that the independent variable has a significant influence on the dependent variable. Likewise, if the p-value is less than 0.05, the independent variable is considered to have a significant impact on the dependent variable. The following presents the results of the model analysis in this study: Figure 4 Diagram Path Analysis Bootstrapping Source: Data Processed using Smart-PLS, 2025 3.3.1. Direct Effect The first stage of this analysis is to examine the direct effect between the variables store atmosphere and sales promotion on purchase decision. The following table presents the direct effect results obtained from the path coefficients output and P-values. Table 11 Direct Effect on Output Path Coefficients Independent Variables and Dependent Variable Path Coeff Sample Mean Standard Deviation T statistics P values Notes Store Atmosphere -> Perceived Value 0.361 0.362 0.101 3.561 0.000 H1 Accepted Sales Promotion -> Perceived Value 0.338 0.345 0.110 3.075 0.002 H2 Accepted Perceived Value -> Purchase Decision 0.402 0.404 0.110 3.657 0.000 H3 Accepted Store Atmosphere -> Purchase Decision 0.162 0.164 0.082 1.980 0.048 H4 Accepted Sales Promotion -> Purchase Decision 0.373 0.370 0.115 3.245 0.001 H5 Accepted Source: Data Processed using Smart-PLS, 2025 Based on the path coefficients presented in table 11, all hypotheses (H1 to H5) were supported. Store atmosphere and sales promotion both have significant positive effects on perceived value, with path coefficients of 0.361 and 0.338, respectively. Perceived value also significantly influences purchase decisions (path coefficient = 0.402). Additionally, store atmosphere and sales promotion directly and positively impact purchase decisions, with path coefficients of 0.162 and 0.373, respectively. All results show t-statistics greater than 1.96 and p-values below 0.05, indicating that these relationships are statistically significant for fashion consumers at Ramayana Department Store in Jakarta.