Track: Business Management

Abstract

The Covid-19 pandemic makes a huge impact on every business sector all around the world, including the culinary business in Indonesia. As a primary sector, before the outbreak happened, the culinary business competition was very tight. Therefore, it becomes more difficult for the culinary business actors to survive and sustain their businesses due to the pandemic. A brownies shop in Tegal City, Indonesia launched several product innovations as a response to this condition. However, some of them were not successful. On the other hand, its sales from 2020 to 2021 were growing. Hence, this study is conducted to examine the impact of product innovation on the purchase decision in this shop. The most influential dimension of product innovation to the purchase decision is also discovered. To gather the data, questionnaires are distributed to 342 customers by using the purposive sampling method. After conducting a validity, reliability, and classic assumption test, descriptive analysis, and a simple linear regression test are utilized to analyze the data. At the end of the data analysis step, the hypothesis test is conducted by using the t-test and followed by the coefficient of determination test. It is found that product innovation has a positive and significant effect on the purchase decisions of the brownies shop consumers with a value of 79.5 percent. Further study is expected to conduct a factor analysis to find out other variables besides product innovation that can influence the purchase decision.