Journal of Marketing and Consumer Research www.iiste.org ISSN 2422-8451 An International Peer-reviewed Journal Vol.85, 2022 20 The Effect of Product Quality and Service Quality on Purchase Decisions Through Word of Mouth at PT Hosana Inti Branch Malang Suginto 1 , Bambang Supriadi², Harianto Respati 2 1.Student in Magister of Management, University of Merdeka Malang, Indonesia 2.Faculty of Economics and Business, University of Merdeka Malang, Indonesia Abstract This study examines four variables, namely product quality, service quality, word of mouth, purchasing decisions. The purpose of this study was to analyze and explain the effect of product and service quality on purchasing decisions by testing word of mouth as an intervention. Research respondents are consumers of PT Hosana Inti Malang Branch. A total of 321 people became the sample of this study. The analysis technique is descriptive, classical assumption test, and linear regression to confirm a structural equation model built by the researcher. A quantitative approach was chosen to explain the influence between research variables. Collecting data using a questionnaire. The results of this study found that word of mouth can mediate the influence of product quality and service quality so that it has an impact on increasing purchasing decisions at PT Hosana Inti Branch Malang. Keywords: Product Quality, Service Quality, Word of Mouth Purchase Decision DOI: 10.7176/JMCR/85-03 Publication date: February 28 th 2022 I. Introduction Economic growth in Indonesia today is influenced by technology and globalization. According to Bank Indonesia data, Indonesia's economic growth in 2019 was above 5%. Entrepreneurs can take advantage of this opportunity to maximize marketing the products and services they produce. People's purchasing power in meeting their daily needs has increased as a result of positive economic growth. Needs are divided into three (judging from the urgency or not), namely the first primary needs are the main needs or natural needs, the needs that are required by nature, for example, food, clothing, housing. The second need is the secondary need, namely the need for additional goods. This need is a result of the increasing human civilization, for example, kitchen utensils and electronic equipment. The third need is the need for tertiary or luxury needs, which are needs that can only be satisfied if the community is in a rich society. These needs can include Primary and Secondary needs but in excess quantity or luxury quality. Examples of Tertiary needs are luxury homes, luxury clothes, and others. Industrial developments also occur in the development of the household appliance industry. This development creates strong competition, so the Company is required to optimize its resources to face the competition. Companies are required to have the right way and strategy so that the company has a competitive advantage to win the competition in marketing its products. Business managers are required to be able to create a competitive advantage over various variables that can influence consumer purchasing decisions so that they can survive and develop, that advantage is the use of appropriate marketing strategies to satisfy customers and face competition in this business. Companies that have strong competitiveness that will be able to survive and develop. In addition to competitive advantage, an effective marketing strategy must be a concern. Another marketing strategy is to bring in new customers and retain existing ones. where retaining existing customers is a priority because it is cheaper and easier than bringing in new customers. Consumers Before deciding to buy a product, try to get complete and detailed product information from advertisements or other people. Consumers will weigh and evaluate existing alternatives. Consumers decide to buy, then what is decided include the right time to buy, which products are following their wishes, and how to buy them. The role of Marketing in this position is very important to evaluate the extent to which the promotions that have been carried out are under the expectations of the Company, namely influencing prospective consumers to make purchases of products offered by the company. According to Tjiptono (2014), Purchase Decision is a process where consumers recognize the problem, seek information about a particular product or brand, and then evaluate how well each alternative can solve the problem, which then leads to a purchase decision. Rumondor's research, Wenda Priskyla (2017) says that product quality has a positive and significant effect on purchasing decisions. The research of Febriana, Diana, et al (2014) states that there is a significant effect of Word of Mouth on Purchase Decisions. The product is an important factor that needs to be considered by the company because it is from the sales turnover of the product that the company can obtain a sales turnover that generates profits. Consumers can demand the company to maintain product quality or improve the products offered. Products that can be