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The Effect of Product Innovation and Promotion on Purchase Decisions: Study Case Kaku Food Makassar

In: Proceedings of the 10th International Conference on Accounting, Management, and Economics (10th ICAME 2025)

Author

Listed:
  • Joya Kanna Paembonan

    (Hasanuddin University)

  • Indrianty Sudirman

    (Hasanuddin University)

Abstract

This study examines how consumer purchasing decisions at Kaku Food, a local MSME in Makassar, are impacted by product innovation and promotion. Understanding how marketing initiatives and innovation affect consumer behavior in the cutthroat culinary sector is the aim of this study. Being one of the expanding MSMEs, Kaku Food must contend with numerous comparable companies, so product distinctiveness and marketing tactics are crucial. Purposive sampling is used in this quantitative study, which includes 100 respondents who are all Kaku Food customers in Makassar City. To collect primary data, structured questionnaires were employed, while relevant papers and regulations provided supporting data. Product innovation and promotion’s impact on consumer purchasing decisions was tested using IBM SPSS 26 multiple linear regression analysis. The findings indicate that there is a considerable and favorable impact from both product innovation and promotion. When compared to promotion, product innovation is the most important variable, indicating that ongoing enhancements to product quality, variety, flavor, and packaging have a greater influence on consumer choice. In the meanwhile, promotion continues to be helpful by raising awareness and promoting experimentation. The result is that in order to maintain competition, boost customer loyalty, and guarantee sustainable growth in Makassar’s vibrant food business, Kaku Food must continuously prioritize innovation while fusing it with successful marketing techniques.

Suggested Citation

  • Joya Kanna Paembonan & Indrianty Sudirman, 2026. "The Effect of Product Innovation and Promotion on Purchase Decisions: Study Case Kaku Food Makassar," Advances in Economics, Business and Management Research, in: Mursalim Nohong & Rianda Ridho Hafizh Thaha & Muhammad Try Dharsana & Andi Tenri Harahap & Fakhrul I (ed.), Proceedings of the 10th International Conference on Accounting, Management, and Economics (10th ICAME 2025), pages 1862-1882, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6239-709-5_130
    DOI: 10.2991/978-94-6239-709-5_130
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