FORMULATING INNOVATIVE BUSINESS MODEL FOR ARTISAN TEA BLENDS PRODUCTS (CASE STUDY OF HARUMONI)

• Main Author: Jyota Acintya, Irhamna
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/86551
• Institution: Institut Teknologi Bandung

This study explores the factors that influence consumer behavior towards purchasing artisan tea blend products through e-commerce platforms. The rise of e-commerce and demand for premium products have created a new market segment for artisan tea blends in Indonesia, whereas tea is generally perceived as low-cost beverage due to market saturation with lower-quality products. The challenge remains in understanding the drivers of purchase intention in this niche market, especially considering the cultural and behavioral factors often linked to tea consumption. The study examines the roles of personal characteristics, cultural perceptions, trust endorsements, perceived usefulness, perceived ease of use, and online shopping preferences on e-commerce purchase intentions by applying quantitative methods and questionnaire research instrument. Results from Partial Least Squares Structural Equation Modelling (PLS-SEM) show that cultural perception, personal characteristics, and trust endorsements play significant roles in driving purchase intentions, while perceived usefulness and online shopping preferences have minimal impact. The research confirms the validity and reliability of the indicators used, showing that 87.4% of the variation in purchase intention can be explained by these factors. The study suggests that for products like artisan tea blends, which are seen more as cultural product rather than regular fast-moving consumer good, online market strategies should prioritize integrating cultural aspects, establishing trustworthiness, and understanding consumer characteristics to enhance engagement and purchasing decisions. This study's findings provide a valuable contribution to both academic research and the practical application of e-commerce strategies for artisan tea blends product. Leveraging these valuable insights, a business model for Harumoni is proposed, aimed at fostering customer engagement, building a competitive advantage, and increasing sales to ensure long-term growth.