ENDORSEMENT VS SALES PROMOTION STRATEGIES: HOW IT IMPACTS PERCEIVED QUALITY, PERCEIVED OF PRODUCT RISK AND SELF-BRAND CONNECTION OF MSMES IN WEST JAVA

• Main Author: Zun Nur'ain Mauligita, Syahnaz
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/57484
• Institution: Institut Teknologi Bandung

Micro, Small and Medium Enterprises (MSMEs) is one aspect that plays a major role in economic growth in Indonesia. In the last ten years, the growth of MSME units per year in Indonesia increased by 4.2 percent per year and the average contribution of MSMEs to Indonesia’s GDP over the past 3 year more than 50%. This condition shows that MSME activities are able to independently encourage the community's economy and also encourage the rate of economic growth in Indonesia. The problem that occurs due to the COVID-19 pandemic is the decline in public consumption, including shopping at MSMEs. To maintain their business, there are several promotional options that MSMEs can choose from. One of the options is sales promotion. Sales promotion is known as one of the most effective methods of influencing sales volume. The second strategy that also has an impact is the endorsement of a third party. Previous studies have identified the impact of monetary promotion through online and in-store strategies to build a strong brand identity. However, understanding about branding development is still lacking, especially promotion and endorsement because previous research was mostly based on multinational or large companies that have different characteristics from MSMEs. Therefore, this research would explore two types of promotions, namely: monetary (vs non-monetary) promotions and celebrity endorsements (vs non-celebrities) into better customer perceptions of MSME products and brands. The relationship between these variables was tested using ANOVA. Data were collected from MSME customers in West Java as the object of research. Data was collected by distributing questionnaires through an online platform and 150 samples were collected. The empirical results of this study confirm that sales promotions (monetary and non-monetary) and endorsements (celebrities and non-celebrities) have a significant effect on customer purchase intentions in MSMEs.