The effect of service quality, product quality and innovation toward customer satisfaction and advocacy for SMEs baby shop business in jabodetabek
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Institusion
Sekolah Tinggi Manajemen Ipmi
Author
Mulyadi, Maria Novena
Subject
Datestamp
2023-02-15 07:55:10
Abstract :
Small and medium enterprises (SMEs) have a significant role in fostering economic growth and ensuring the nation's own equitable and sustainable development. It cannot be disputed that SMEs in Indonesia are able to employ 90% of the labor force. To decrease poverty, the proportion of micro and small businesses in the GDP is anticipated to raise the average income for low-income groups. Over 62 million SMEs (small and medium-sized enterprises) are currently operating in Indonesia, or one SMEs for every five Indonesians. 98.75% of these (61.5 million) are small businesses. Indonesia has a sizable market for imported and local baby items due to its huge population of young children (24 million in the 0-4 age group) and parent's increasing awareness of health and hygiene. The infant and maternity market in Indonesia is anticipated to grow in the next years due to increased purchasing power. In Indonesia and some other nations, literature studies on SMEs and their development have been frequently conducted. Most research on SMEs focused on the impact of SMEs, the challenges they faced, and the institutional issues. The purpose of this study is to examine the impact of service quality, product quality and innovation toward customer satisfaction, also advocacy toward SMEs baby shop customer in Indonesia. A total sample of 112 respondents from Jabodetabek customer were collected through purposive sampling method. The data used was primary data which was obtained through questionnaire and processed quantitatively using SPSS and SEM PLS to test the hypotheses. The study find that there are positive effect on service quality, product quality and innovation to customer satisfaction. Also there is positive effect on product quality, innovation, customer satisfaction to advocacy. Just one hypothesis that is no effect for service quality to advocacy.
Small and medium enterprises (SMEs) have a significant role in fostering economic growth and ensuring the nation's own equitable and sustainable development. It cannot be disputed that SMEs in Indonesia are able to employ 90% of the labor force. To decrease poverty, the proportion of micro and small businesses in the GDP is anticipated to raise the average income for low-income groups. Over 62 million SMEs (small and medium-sized enterprises) are currently operating in Indonesia, or one SMEs for every five Indonesians. 98.75% of these (61.5 million) are small businesses. Indonesia has a sizable market for imported and local baby items due to its huge population of young children (24 million in the 0-4 age group) and parent's increasing awareness of health and hygiene. The infant and maternity market in Indonesia is anticipated to grow in the next years due to increased purchasing power. In Indonesia and some other nations, literature studies on SMEs and their development have been frequently conducted. Most research on SMEs focused on the impact of SMEs, the challenges they faced, and the institutional issues. The purpose of this study is to examine the impact of service quality, product quality and innovation toward customer satisfaction, also advocacy toward SMEs baby shop customer in Indonesia. A total sample of 112 respondents from Jabodetabek customer were collected through purposive sampling method. The data used was primary data which was obtained through questionnaire and processed quantitatively using SPSS and SEM PLS to test the hypotheses. The study find that there are positive effect on service quality, product quality and innovation to customer satisfaction. Also there is positive effect on product quality, innovation, customer satisfaction to advocacy. Just one hypothesis that is no effect for service quality to advocacy.
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