ANALYSIS INFLUENCE OF INNOVATION IN PRODUCT EXCELLENCE, PRODUCT PRICE, AND PRODUCT CREDIBILITY TOWARDS CUSTOMER’S PURCHASE INTENTION IN HERBAL TEA PRODUCTS

• Main Author: Nabila, Ranah
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/66931
• Institution: Institut Teknologi Bandung

The development of herbal tea products in Indonesia has great potential not only because there are plenty of natural commodities found in this country, but also the habit of Indonesian citizens that make drinking tea a lifestyle. However, the growth of business that is significantly increased in Indonesia shows a very strict competition. To survive and win the market, companies including the herbal tea industry must conduct product innovation based on customer preferences in order to improve the quality of goods or services offered, so that in the future they can make customers increase their purchase intentions. By using the multi linear regression method, the influence of product innovation towards the purchase intention in herbal tea products is positively significant at 77.9%. Moreover, the product innovation variables in the form of product excellence, product price, and product credibility can explain about 60.1% towards the purchase intention. The product credibility variable has the greatest influence when compared to product excellence and product price. Using simple linear regression, it is also found that the dimensions of product scent, suitability between product price and benefits, and product information are the most significant dimensions compared to the others. The results of this study can be used to build business strategies for herbal tea companies including Teh Dinara so that they can innovate products that are in accordance with what their customers want. Keywords: “Herbal Tea”, “Product Innovation”, “Product Excellence”, “Product Price”, “Product Credibility”, “Purchase Intention”