The Influence of Price and Product Quality on Consumer Purchase Decisions of Es Teler Nara

Abstract

The food and beverage industry in Indonesia, particularly within the Micro, Small, and Medium Enterprises (MSMEs) sector, has experienced rapid growth alongside increasingly intense market competition. This condition encourages business actors to continuously improve their competitiveness through appropriate pricing strategies and superior product quality. This study aims to analyze the influence of price and product quality on consumer purchase decisions at Es Teler Nara, a modern culinary MSME operating four branches in Kediri and Nganjuk Regencies. The research employed a quantitative approach with an explanatory research design. Data were collected from 80 respondents selected through accidental and purposive sampling techniques based on the Slovin formula. Respondents consisted of consumers who had purchased Es Teler Nara products and were at least 15 years old. Data collection was conducted using structured questionnaires measured through a five-point Likert scale. The data were analyzed using Multiple Linear Regression with the assistance of SPSS software. The results indicate that price has a positive and significant partial effect on purchase decisions, evidenced by a t-value of 6.381, which exceeds the critical value of 1.991, with a significance level of 0.000. Product quality also demonstrates a positive and significant effect on purchase decisions, as indicated by a t-value of 2.075 and a significance level of 0.041. Simultaneously, price and product quality significantly influence consumer purchase decisions, reflected by an F-value of 22.738 and a significance level of 0.000. The coefficient of determination (R²) of 0.371 indicates that 37.1% of the variation in purchase decisions can be explained by price and product quality, while the remaining 62.9% is influenced by other variables outside the research model. These findings emphasize the importance of maintaining competitive prices and consistent product quality to enhance consumer satisfaction and encourage repeat purchases in the modern beverage industry.