THE EFFECT OF PRODUCT INNOVATION ON PURCHASE INTENTION IN THE MSME FOOD AND BEVERAGE INDUSTRY WITH GEN Z SEGMENTATION

• Main Author: Krisna Paulus Riwu Kaho, Wolo
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/77346
• Institution: Institut Teknologi Bandung

The COVID-19 pandemic illustrates to Indonesia the need to maintain economic stability and the Food and Beverage industry is one of the largest contributors to GDP to support the country's economy. The high interest in this industry is in line with the high risk of going bankrupt if it fails to adapt and is unable to compete with competitors. For this reason, product innovation needs to be done to prevent this. Ideally, product innovation has an effect on purchase intention, whereas in fact product innovation does not always have an effect on purchase intention because the way it is done is wrong and there is no proper innovation guide. For this reason, this study aims to determine the effect of product innovation on purchase intention in the MSME Food and Beverage Industry and to determine the effectiveness of product innovation on purchase intention in the MSME Food and Beverage Industry. The method used is quantitative to test the truth of the hypothesis. Data collection was carried out by distributing questionnaires to 220 respondents who are Gen Z (17-16 years old), domiciled in DKI Jakarta or Bandung, and culinary MSME buyers with a frequency of "Often". As a result, simultaneously product innovation influences purchase intention in MSME food and beverage industry with an amount influence of 73.5%. Partially, of the 14 hypotheses, only 7 dimensions were accepted and stated to have a significant effect on purchase intention, namely taste and rarity in the creation factor. Then, customer service, marketing, launch timing, distribution, and branding on the deployment factor. If the level of effectiveness is sorted from the most effective to the least effective, the sequence is customer service, marketing, launch timing, taste, distribution, branding, rarity, portion, pricing, appearance, imitability, organization, value, licensing & compatibility. The results of this study are recommended to be useful for use by MSME businesses as a guide in innovating in order to attract Gen Z purchase intention. Also, it is useful for future research on similar topics, but by eliminating 2 or 3 dimensions with the lowest value weight so that the results are more accurate.