The effect of patronage buying motives on small business profitability: evidence from Indonesia

Chalarce Totanan · Arung Gihna Mayapada · Nina Yusnita Yamin · Ni Made Suwitri Parwati · Rahayu Indriasari

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Consumer Behavior and Marketing Influence Consumer Market Behavior and Pricing SMEs Development and Digital Marketing

Abstract

This study aims to find and analyze the profitability level of Fried Onion Small Business in Palu City, influenced by Patronage Buying Motives (PBM), which consist of company reputation, location of sales, selling price and guarantee to profitability. The population of this study was 52. Population was chosen based on small business that still survives in fried onion business as a local business. The sample taken by purposive sampling was 35. Data collection was carried out by distributing questionnaires to the managers of fried onion small businesses. The analytical tool used is multiple linear analysis. The results shows that F test of PBM had a significant influence on profitability at 0,822 or 82.2%. This means a very strong influence of the value of PBM. T-test shows that corporate reputation is of significant value of 0,286, location of sales – 0,426, and selling price has a significant value of the 0.235 influence on profitability, except guarantees that do not affect profitability because the value of 0.151 is less than the t table value of 2.0395. The impact of this study implies that small food businesses do not really need a guarantee like electronic products, because reputation and quality have become their guarantee.

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References

2006Metode penelitian kuantitatif & kualitatif 1993An Examination of the Effect of Product Performance on Brand Reputation, Satisfaction and Loyalty 2013Perilaku Konsumen dan Strategi Pemasaran 2015Factors affecting Halal purchase intention – evidence from Pakistan’s Halal food sector 2019The impact of perceived CSR on corporate reputation and purchase intention 2019Personal intrinsic religiosity and product knowledge on halal product purchase intention 2018Exploring the impact of intellectual capital on company reputation and performance 2018Assessment of consumers' motivations to purchase a remanufactured product by applying Fuzzy Delphi method and single valued neutrosophic sets

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