Factors Affecting the Competitiveness of Local Products in Bak Bili Leather Weaving Crafts Made from Bili Trees or Bemban
Trees in Aceh Besar
Radhiana1*, Kasmaniar2 & Mukhdasir3
1 Faculty of Economics, Universitas Serambi Mekkah, Aceh, Indonesia
2 Faculty of Economics, Universitas Serambi Mekkah, Aceh, Indonesia
3STIES Serambi Mekkah Aceh Jaya, Aceh, Indonesia
*Corresponding Author: Radhiana, [email protected]
Abstract
The purpose of this study was to determine the factors that influence the competitiveness of local products on Bak Bili woven leather craftsmen made from Bili trees or Bemban trees in Aceh Besar on the marketing performance of MSME products in Aceh Besar. The population of this study consisted of 112 Bak Bili leather woven craftsmen, and the sampling technique using the census method was obtained so that the sample in this study was the same as the total population of 112 people. Sources of data in this study using primary data. The method of data analysis in this study used multiple linear regression analysis. The results showed that simultaneously digital marketing variables, product quality, and price had a significant effect on the competitiveness of local products on Bak Bili woven leather craftsmen made from Bili trees or Bemban trees in Aceh Besar. Then the results of the partial test where the digital marketing variables, product quality and price have a significant effect on the competitiveness of local products. The magnitude of the influence of digital marketing on the competitiveness of local products is 0.392 or 39.2%, and the product quality variable affects the competitiveness of local products. The magnitude of the influence of product quality on the competitiveness of local products is 0.275 or 27.5%, while the price variable also affects the competitiveness of local products, which is 0.228 or 22.8%.
Keywords: Digital Marketing, Product Quality, Product Competitiveness, Bak Bili Crafts.
1. Introduction
Aceh's handicraft products have a special attraction for national and foreign consumers; therefore, Acehnese craftsmen must increase creativity and innovation. Aceh's superior products, which are very varied and attractive so that they have a direct impact on improving the craftsman's economy. Creative industry players are expected to take advantage of this opportunity and must excel in the ASEAN Economic Community, even though there are many challenges but they must see it as a good opportunity and opportunity and the craftsmen must be consistent in developing and improving their craft products.
Product development in line with market trends is an important aspect of business.
to design good products and the need for slight modifications to these products so that Acehnese handicraft products have more beautiful, attractive and unique values and can increase the competitiveness of local products. According to Hossain et al. (2022) one of the efforts that can be made by business people to increase the growth of businesses that have just started is by utilizing digital marketing so that they can help business people reach a wider market. Digital marketing can increase the competitiveness of a country's products. Furthermore, Falahat et al. (2020) explained that pricing is one of the determinants of competitive advantage for Small and Medium Enterprises in marketing
products in the global market. Structure (2022) also explained that product quality greatly determines the competitiveness of a country.
Aceh handicraft products from woven Bili bark (Bemban trees) are one type of product with Acehnese characteristics that are often sought after by tourists in Aceh. This regional handicraft made from natural materials, which was originally only used as a tool to support the daily activities of the Acehnese people, is now also used as a souvenir. The people in the village make plaits made from tubs of bilis or Bemban trees. From this bemban raw material, the community conjures it into various beautiful and unique handicrafts. Some of the products produced include tampi, food containers, leather bags, leather baskets, serving lids, flower vases and many more. Apart from being beautiful, durable and made from natural materials, these handicraft products also support the reduction of plastic waste that causes global warming. And if all Indonesian people, including Acehnese, are aware of getting used to using reusable woven products like this for shopping at the market, then the damage to nature will be reduced and these woven products are durable and can be used for a long time.
Based on the background of the problems that have been described previously, the study proposed the following research questions:
1. Does digital marketing, price and product quality simultaneously affect the competitiveness of local products in Bak Bili woven leather craftsmen in Aceh Besar?
2. Does digital marketing partially affect the competitiveness of local products in Bak Bili woven leather craftsmen in Aceh Besar?
3. Does the price partially affect the competitiveness of local products in Bak Bili woven leather craftsmen in Aceh Besar?
4. Does product quality partially affect the competitiveness of local products in Bak Bili woven leather craftsmen in Aceh Besar?
Meanwhile, the purposes of this research were as follows:
1. To find out how much influence digital marketing, price and product quality simultaneously have on the competitiveness of local products in Bak Bili woven leather craftsmen in Aceh Besar.
2. To find out how much influence digital marketing partially has on the competitiveness of local products in Bak Bili woven leather craftsmen in Aceh Besar .
3. To find out how much the effect of price is partially on the competitiveness of local products in Bak Bili woven leather craftsmen in Aceh Besar .
4. To find out how much influence product quality partially has on the competitiveness of local products in Bak Bili woven leather craftsmen in Aceh Besar.
Research Hypotheses
The hypotheses proposed in this study are as follows:
H a1: It is suspected that digital marketing, price and product quality simultaneously affect the competitiveness of local products in Bak Bili woven leather craftsmen in Aceh Besar.
H a2: It is suspected that digital marketing has partially affected the competitiveness of local products in Bak Bili woven leather craftsmen in Aceh Besar.
H a3: It is suspected that the price has partially affected the competitiveness of local products in Bak Bili woven leather craftsmen in Aceh Besar .
H a4: It is suspected that product quality has partially affected the competitiveness of local products in Bak Bili woven leather craftsmen in Aceh Besar.
2. Method Research Design
This research was conducted on Bak Bili or bemban tree woven craftsmen in Aceh Besar, located in Lampanah Tunong Village, Indrapuri District, Aceh Besar District. The object of this research is digital marketing, price and product quality, while the subject is woven Bak Bili or Bemban trees in Aceh Besar. The type of research to be carried out is quantitative descriptive research. Quantitative descriptive research is used for a quantitative research in the form of a numerical description (statistics).
Population and Sample
The population in this study were artisans of Bak Bili or bemban trees in Aceh Besar. While the sampling technique uses saturated or census sampling methods, according to Suliyanto (2016) the census method is sampling based on the total population, where in this study the total population is 112 artisans, then according to Sugiyono (2015) if the total population is less than 100 people then it can be taken as a whole as a sample in this study. Thus, this research is a population or census study, so that the sample in this study was 112 artisan respondents on Bak Bili or Bemban tree woven craftsmen in Aceh Besar.
The Scope of Research
This study takes a scope in the field of marketing with a unit of analysis examining the factors that influence the competitiveness of local products in woven Bak Bili craftsmen made from Bili trees or Bemban trees in Aceh Besar which is located in Lampanah Tunong Village, Indrapuri District, Aceh Besar District.
Framework
From the description of the basis listed in the theory above, the framework for this research can be described, as shown in Figure 1.
Figure 1. Framework
Data Collection Instruments and Techniques
The collection of data used in this study is to use a personal questionnaire. This method provides responses to questionnaire statements. In this study the questionnaires
Digital Marketing (X1)
Product Competitiveness
(Y) Product quality
(X2)
Price (X3)
were distributed directly to the respondents and the researchers were able to provide an explanation regarding the purpose of the survey and questions that were not understood by the respondents and the responses to the questionnaires could be collected directly by the researchers after being filled in by the respondents, where the respondents were asked to choose one of the alternative answer options. Personal questionnaires are used to obtain data about the dimensions of the constructs being developed in this study.
Data Analysis Technique
The data analysis technique used in this study is multiple linear regression analysis, where Multiple linear regression analysis is used to estimate how the condition (rise and fall) of the dependent variable, if two or more dependent variables as predictor factors are manipulated (the value is increased or decreased) (Sugiyono, 2012). When translated mathematically the form of the equation of multiple linear regression is as follows:
Y = α + β 1 X 1 + β 2 X 2 + β 3 X 3 + e Where:
Y : Product Competitiveness
α : Constant
X 1 : Digital Marketing X 2 : Price
X 3 : Product Quality
β 1 , β 2 and β 3 : Regression Coefficients X 1 , X 2 and X 3
e : Error terms
3. Results and Discussion
In accordance with the data analysis equipment used to determine the functional relationship between the variables studied in this study using multiple linear regression analysis. To see the factors that can affect the competitiveness of local products in Bak Bili woven leather craftsmen made from Bili trees or Bemban trees in Aceh Besar, it is necessary to know the effect of digital marketing, price and product quality on the competitiveness of local products.
Results
For data analysis in this study used multiple linear regression. Testing the results of multiple linear regression as shown in Table 1.
Table 1.
Coefficients a Model
Unstandardized Coefficients
Standardized
Coefficients t Sig.
Collinearity Statistics
B std. Error Betas tolerance VIF
1
(Constant) 2,257 2.165 1,043 .299
Digital
Marketing .392 088 .363 4,450 .000 .840 1,190
Product
quality .275 095 .243 2,906 .004 .801 1,248
Price .228 080 .231 2,840 005 .848 1,179
a. Dependent Variable: Product Competitiveness Source: SPSS Outputs, (2022)
Based on Table 1, multiple linear equations can be formulated, as follows:
Y = 2.257 + 0.392 X1 + 0.275 X 2+ 0.228 X 2 + e
From the regression equation above, it can be seen that the results of the study are as follows:
a. The constant value of local product competitiveness in Bak Bili woven leather craftsmen in Aceh Besar is 2.257, explaining that if digital marketing (X1) price (X2) and product quality (X3) do not change or remain constant, then the competitiveness of local products in Bak Bili woven leather craftsmen in Aceh Besar are constantly only 2,257 units.
b. The regression coefficient value for the effect of the digital marketing variable (X1) is 0.392, with a significance value of 0.000 where the value is below 0.05 which means that every increase in digital marketing activity among artisans by 1 unit will increase the competitiveness of local products. for Bak Bili woven leather craftsmen in Aceh Besar of 0.392 units. Thus, if digital marketing can be increased, Bak Bili woven leather craftsmen in Aceh Besar will have a local product competitiveness of 39.2%.
c. The regression coefficient value of the effect of the price variable (X2) is 0.275, with a significance value of 0.004 where the value is below 0.05 which means that the better the price offered for products from artisans by 1 unit, it will increase the competitiveness of local products in Bak Bili woven leather craftsmen in Aceh Besar of 0.275 units. Thus, the better the price offered, the Bak Bili woven leather craftsmen in Aceh Besar will increase the competitiveness of local products by 27.5%.
d. The regression coefficient value of the effect of the product quality variable (X3) is 0.228, with a significance value of 0.005 where the value is below 0.05 which means that the higher the product quality of the craftsmen by 1 unit, it will increase the competitiveness of local products in woven craftsmen Bak Bili skin in Aceh Besar of 0.228 units. Thus, if the quality of the product is higher, Bak Bili woven leather craftsmen in Aceh Besar will increase the competitiveness of local products by 22.8%.
To see the relationship and influence of digital marketing variables, price and product quality on the competitiveness of local products in Bak Bili woven leather craftsmen in Aceh Besar, based on correlation and determination can be seen in Table 2.
Table 2 Summary Model b
Model R R Square
Adjusted R Square
std. Error of the Estimate
1 .629 a .395 .379 1695
a. Predictors: (Constant), Price, Digital Marketing, Product Quality
b. Dependent Variable: Product Competitiveness Source: SPSS Outputs, (2022)
The correlation coefficient (R) of 0.629 explains that there is a positive and strong relationship between digital marketing variables (X1) price (X2) and product quality (X3) and the competitiveness of local products in Bak Bili woven leather craftsmen in Aceh
Besar. Thus if the relationship between product quality strategy and trust can be improved, the competitiveness of local products will increase in Bak Bili woven leather craftsmen in Aceh Besar.
Then the value of the coefficient of determination (R2) of 0.395 explains, the role of digital marketing variables (X1) price (X2) and product quality (X3) in influencing the competitiveness of local products in Bak Bili woven leather craftsmen in Aceh Besar is 0.395 (39.5%). While the remaining 0.605 (60.5%) is influenced by other variables not involved in this study. Thus, the role of the independent variables in supporting changes in the dependent variable in this research model is relatively usable because they contribute to increasing the competitiveness of local products in Bak Bili woven leather craftsmen in Aceh Besar by 39.5%.
The results of hypothesis testing through the F test are carried out to see the effect of the independent variables on the dependent variable simultaneously (simultaneously).
Can be explained in Table 3.
Table 3 ANOVA a Model
Sum of
Squares df MeanSquare F Sig.
1 Regression 202,799 3 67,600 23,536 .000 b
residual 310,192 108 2,872
Total 512,991 111
a. Dependent Variable: Product Competitiveness
b. Predictors: (Constant), Price, Digital Marketing, Product Quality Source: SPSS Outputs (2022)
To test the hypothesis simultaneously, it is statistically possible to use the probability value F <0.05 as follows
H 1: β 2 = β 3 = β 4 (β 2 = β 3 = β 4) and accept the alternative hypothesis (Ha1). This means that digital marketing (X1) price (X2) and product quality (X3) simultaneously have a significant effect on the competitiveness of local products in Bak Bili woven leather craftsmen in Aceh Besar.
Furthermore, based on Table 1 above, it can be seen that the significant value is used to test the hypothesis partially or t test. Furthermore, statistical hypothesis testing can be used with a probability value of t <0.05 as follows:
H 2: β 2 ≠ 0, with the highest probability value of 0,001 (0,001 < 0,05). This means that the null hypothesis (Ho2) is rejected the alternative hypothesis (Ha2) is accepted.
This also means that digital marketing (X1) partially has a significant effect on product competitiveness.
H 3: β 3 ≠0, with the highest probability t-value of 0,000 (0,020 < 0,05). This means that the null hypothesis (Ho3) is rejected the alternative hypothesis (Ha3) is accepted.
This also means that the price (X2) partially has a significant effect on product competitiveness.
H 4: β 4 ≠0, with the highest probability t-value of 0,000 (0,020 < 0,05. This means that the null hypothesis (Ho4) is rejected the alternative hypothesis (Ha4) is accepted.
This also means that product quality (X3) partially has a significant effect on product competitiveness.
Discussion
Based on the results of the hypothesis analysis, it shows that the digital marketing variables (X 1 ) price (X 2 ) and product quality (X 3 ) simultaneously have a significant effect on the competitiveness of local products in Bak Bili woven leather craftsmen in Aceh Besar, this is due to product competitiveness locally, maximum efforts are needed
from Bak Bili woven craftsmen to continue to improve digital marketing activities, as well as setting the best price or in accordance with product quality, so as to form a strong perception in the minds of consumers, if the product being marketed has wide reach through digital use marketing, with affordable prices according to the quality of the products produced, there will be more and more opportunities for Bak Bili craftsmen to gain a share in various circles of society in Indonesia.
The constant value in this study is 2.257. This means that if digital marketing, price and product quality are considered constant, then the level of product competitiveness is 2.257. Furthermore, the results of partial hypothesis testing obtained the coefficient value of the digital marketing variable, amounting to 0.392. This means that every 100% change in product quality strategy will relatively increase product competitiveness by 39.2%.
Thus, it can be said that the higher the digital marketing activities carried out by Bak Bili woven leather craftsmen in Aceh Besar, the more product competitiveness will increase.
The results of this study are in line with research conducted by Knudsen et al. (2022) that digitization can increase the competitive advantage of products in a sustainable manner and can embrace markets that are served quickly. Likewise, research conducted by Rizvanovic et al. (2022) which states that digital marketing can increase the growth of businesses that are just starting. Furthermore, research conducted by Varadarajan et al. (2012) which states that digital marketing affects the competitiveness of companies
The value of the regression coefficient on the price variable is 0.275. This means that every 100% change in relative price will increase product competitiveness by 27.5%.
Thus, it can be said that the better the price offered by Bak Bili woven leather craftsmen in Aceh Besar, the higher the competitiveness of the product. The results of this study are in line with research conducted by Hallikainen et al. (2022) which states that price promotions have an impact on product marketing activities.
The regression coefficient value on the product quality variable is 0.228. This means that every 100% change in product quality will relatively increase product competitiveness by 22.8%. Thus, it can be said that the higher the quality of the products offered by Bak Bili woven leather craftsmen in Aceh Besar, the more competitive the product will be. The results of this study are in line with the research conducted by Struck (2022) also explained that product quality greatly determines the competitiveness of a country.
4. Conclusions
Based on the results of research and discussion it can be concluded several things as follows:
1. Digital marketing, price and product quality simultaneously affect the competitiveness of local products in Bak Bili woven leather craftsmen in Aceh Besar.
2. Digital marketing has partially affected the competitiveness of local products in Bak Bili woven leather craftsmen in Aceh Besar by 0.392, meaning that every 100% change in digital marketing activity will relatively increase product competitiveness by 39.2%.
3. Prices partially affect the competitiveness of local products in Bak Bili woven leather craftsmen in Aceh Besar by 0.275, meaning that every 100% change in price will relatively increase product competitiveness by 27.5%.
4. Product quality partially affects the competitiveness of local products in Bak Bili woven leather craftsmen in Aceh Besar by 0.228, meaning that every 100% change in product quality will relatively increase product competitiveness by 22.8%.
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