The Influence of Brand Image, Product Innovation, and Market Orientation on Sustainable Competitive Advantage for Mama Lemon Dishwash Products in the
City of Surabaya
Vicky Yuli Andrianto, I Gede Arimbawa Department of Management, Narotama University, Jl. Arif Rahman Hakim No 51, 60117, Surabaya, Indonesia [email protected], [email protected]
Abstract
This study aims to determine the significant influence on brand image, product innovation and market orientation on the sustainable competitive advantage of mama lemon dishwash products in the city of Surabaya.
To collect data for this study, the authors used an online survey (google form) to 100 respondents, using the Questionnaire technique. The type of research used in this study is a type of quantitative research using multiple linear analysis techniques. Based on the results of the study, it shows that there is a significant influence partially or simultaneously between brand image and product innovation on sustainable competitive advantage.
Meanwhile, on the market orientation variable, there is no evidence of a significant partial effect on sustainable competitive advantage.This can be shown by the partial significance of the brand image variable to competitive advantage 0.001 < 0.05, product innovation to competitive advantage 0.000 < 0.05, market orientation to competitive advantage 0.703 < 0.05. While the significance value simultaneously shows (0.000 < 0.005).
Keywords:
Brand Image, Competitive Advantage, Market Orientation, Product Innovation.
1. Introduction
The development and growth of the culinary business is currently quite increasing in Indonesia, especially in Surabaya, especially in the food and beverage sector, this is marked by the proliferation of restaurants, food stalls, and coffee shops. So that they use a lot of equipment, be it plates, glasses, spoons, forks and other equipment which after use becomes dirty, so they need a product to clean dirty equipment, one of which is the Mama Lemon Dishwashing Product. In the current market situation, competition is very tight because there are many products on the market, so the meaning of a Brand Image, Product Innovation, and Market Orientation to Competitive Product Advantage becomes very important.
Consumers are individuals who have different characteristics, the assessment felt by each consumer of a product received is not the same. Consumers assume that well-known brands in the market are better and of higher quality than less popular brands in the market, because consumer perceptions of popular brands and providing complete information will be able to influence decisions in buying a product so that consumers are able to provide perceptions about whether or not the product being sold.
Brand Image is a factor that influences consumer purchasing decisions and a good brand image will have a positive impact on the company and can provide company benefits through increasing consumer purchases of the product (Adiwidjaja, Jiwa, and Tarigan 2017) related to the brand being in the minds of consumers or impressions about the image, consumers must have a positive image of the image to make a purchase, the creation of an impression becomes the basis of modern marketing orientation, namely through giving attention and creating brands (Fatmawati and Soliha 2017).
Product innovation is the whole process that starts from new ideas, new discoveries and the development of a new market that influences each other. The result of the introduction of a new method in the form of innovation has a very large change in comparing the use value test of the benefits of a product produced by the company and the price set by the manufacturer (Kotler and Keller 2016). Innovation must be carried out continuously by the company because it is a basic need to be able to create product advantages in competition.
Product innovation can be used as a strategy to improve marketing performance. Competition in the industrial world is not only about price and product quality, but also product innovation that is used as a marketing strategy so that marketing performance increases and the company also has the opportunity to be more advanced and superior to its competitors because the company can know what the market wants.
Market orientation as a marketing concept includes three things: 1. Focus on the will and desires of consumers, so that the organization can differentiate its products with products offered by competitors. 2.
Integrate all organizational activities including production to satisfy consumer needs.3. Achievement of the organization's long-term goals by satisfying consumer needs and wants legally, and being responsible for all policies regarding its consumers Lamb and Hair (2001). Through market orientation, companies can assess what will be done in the short and long term In the short term, the company must try to understand the strengths and weaknesses of existing competitors, while in the long term, what should the company do in the future in achieving marketing performance.
Competitive advantage is an advantage over competitors that is obtained by offering a lower value or by providing greater benefits because the price is higher (Kotler and Amstrong 2003). Competitive advantage must be owned by the company to improve marketing performance, companies that have a competitive advantage certainly have distinctive products and are not owned by their competitors.
From the influence of Brand Image, Product Innovation and Market Orientation, it generates consumer attraction for the Advantages of Sustainable Competitive Products. Because the perspective of every society or consumer is different, some see in terms of the influence of brand image, product innovation and market orientation, therefore the three of them can determine which products to excel in competing so that they can be attractive or not to potential buyers.
Products that use a brand image are dishwashing products, one of which is the Mama Lemon brand.
Mama Lemon brand dishwashing soap is a thick, colored liquid that functions to clean dirty tableware and kitchenware, so that washing dishes becomes a daily activity for mothers.
Table 1. Introduction
Top Brand Index survey results table 2020 – 2022
Product Name 2020 2021 2022
Sunlight 72.9% 73.2% 71.6%
Mama Lemon 12.8% 15.2% 16.0%
Source: https://www.topbrand-award.com/top-brand-index/
2. Conceptual Framework and Hypothesis Building
2.1. Conceptual FrameworkBased on the literature review which explains that where brand image, product innovation, and market orientation affect the sustainable competitive advantage. the theoretical framework that can be developed is as shown in the following figure:
H1
H2 H2 H4
H3
Information : Partial Test Simultaneous Test 2.2. Hypothesis
Based on the formulation of the problem, and the description of the literature review mentioned above, the author proposes a research hypothesis as follows:
1. Brand Image, Product Innovation, and Market Orientation partially influence the Sustainable Competitive Advantage of Mama Lemon's Dish Soap Products in Surabaya.
Brand Image (X1)
Sustainable Competitive Advantage (Y1) Product Inovation
(X2) Market Orientation
(X3)
2. Brand Image, Product Innovation, and Market Orientation have a simultaneous effect on the Sustainable Competitive Advantage of Mama Lemon's Dish Soap Products in Surabaya.
3. Design, methods and approach
3.1. Research Instrument DesignResearch instrument is a tool used to measure observed natural and social phenomena, specifically this phenomenon is called research variable. The design of the instrument in this study can be described as follows:
Table 2. Research Instrumen Design
No. Variable Operational
Definition Indicator Scale
1. Brand Image (X1)
The perception given by consumers to the
mama lemon dish soap product that the
company gives to consumers
1. Image of the maker (Corporate Image)
1) popularity, 2) credibility, 3) company network
2. Product image 1) attributes of the product,
2) benefits for consumers, 3) guarantee.
3. User Image (User Image) 1) the user himself, 2) his social status.
(Aaker and Biel 1993)
Likert Scale 1-5
2. Product Innovation
(X2)
Consumer perceptions of the
innovation of creating mama lemon
products that are marketed, including
innovations in all functional processes/uses
1. Product Quality 1) reliability, 2) the resulting accuracy.
2. Product Variants 1). Size 2). Composition 3. Product Style and Design
1) Product appearance 2)Product Packaging (Armstrong and Kotler
(2004) in (Tjiang and Harjanti 2013)
Likert Scale 1-5
3. Market Orientation
(X3)
Consumers' perceptions of the mama lemon brand
dishwashing soap products that have paid attention to customer needs, competitors of similar products, and
market information.
1. Customer orientation 2. Competitor orientation
3. Market Information (Aris 2015) Likert Scale 1-5
Likert Scale 1-5
4. Sustainable Competitive
Advantage (Y)
The ability of mama lemon laundry soap products to provide more value to its products compared to
its competitors and this value does bring benefits to customers
1. Product Uniqueness 2. Product Quality 3. Competitive Price (Droge, Vickery, and Markland, 1994)
Likert Scale 1-5
Source: Researchers, Data processed 2022
3.2. Data Collection Methods 1. Questionnaire
Questionnaire is a technique of collecting data through formulas that contain questions submitted in writing to a person or group of people to get answers or responses and information needed by researchers (Mardalis, 2006)
The measurement scale used in this questionnaire is a Likert scale, which is a scale used to measure perceptions, attitudes or opinions of a person or group regarding an event or social phenomenon. Individuals can respond to five options on each question, namely:
1. Score 1 for strongly disagree (STS) 2. Score 2 for the value of disagree (TS), 3. Score 3 for the value quite agree (CS), 4. Score 4 for agree (S)
5. Score 5 for the value strongly agree (SS).
To obtain an overview of the respondents' answers, a class interval table was made which aims to calculate the value or score of answers filled in by respondents
3.3. Research Approach
This type of research is carried out using a quantitative approach. The quantitative research method is a method based on the philosophy of positivism, which is used to examine certain populations and samples, data collection techniques using research instruments, quantitative or statistical data analysis that aims to test hypotheses that have been set by Sugiyono (2015).
4. Analysis result and discussion
4.1. Classic Assumption Test 1. Normality TestThe normality test aims to test whether the regression model of the dependent variable and the independent variable both have a normal distribution or not. Based on the results of SPSS calculations, the following results are obtained.
Table 3. Normality Test One-Sample Kolmogorov-Smirnov Test
Brand Image
Produt Inovation
Market Orientation
Sustainable Competitive Advantage
N 100 100 100 100
Normal Parametersa Mean 37.6900 27.8000 13.6100 14.1100
Std.
Deviation 4.15531 3.47865 2.15507 1.61992
Most Extreme Differences
Absolute .289 .276 .311 .369
Positive .289 .264 .259 .291
Negative -.271 -.276 -.311 -.369
Kolmogorov-Smirnov Z 2.891 2.764 3.105 3.686
Asymp. Sig. (2-tailed) .200 .100 .300 .200
Source: Researchers, Data processed 2022
In the table above, using the Kolmogorov Smirnov test, it can be obtained that the data in this study are normally distributed. Can be seen on Asymp. Sig (2 tailed) indicates the significance value of each variable is greater than the predetermined significance value of 0.05. This means that the data in this study are all normally distributed.
2. Multicollinearity Test
Multicollinearity test aims to test whether the regression model found a correlation between the independent variables (independent). A good regression model should not have a correlation between the independent variables.
Table 4. Multicollinearity Test Model
Unstandardized Coefficients Standardized Coefficients
t Sig.
Collinearity Statistics
B Std. Error Beta Tolerance VIF
1 (Constant) .739 .277 2.665 .009
Brand Image .441 .127 .423 3.469 .001 .204 4.912
Product Inovation .371 .163 .398 2.277 .025 .099 10.087
Market Orientation .037 .097 .050 .383 .703 .181 5.536
Source: Researchers, Data processed 2022
Based on the output above the brand image tolerance value of 0, 204> 0.10, it means that there is no multicollinearity in the regression model. The product innovation tolerance value of 0.099> 0.10 means that there is no multicollinearity in the regression model. The market orientation tolerance value of 0.021>0.10 means that there is no multicollinearity in the regression model. Based on the price perception VIF value of 1.448 < 10.00 that there is no multicollinearity in the regression model. Based on the value of VIF brand image of 4.912 < 10.00 that there is no multicollinearity in the regression model. Based on the product innovation VIF value of 10.087 < 10.00 that there is no multicollinearity in the regression model. Based on the market orientation VIF value of 5.536 < 10.00 that there is no multicollinearity in the regression model.
3. Heteroscedasticity Test
Heteroscedasticity test aims to test whether in the regression model there is an inequality of variance from the residual of one observation to another observation. A good regression model is that the residuals are constant or the same for various observations.
Table 5. Heteroscedasticity Test Coefficientsa
Model
Unstandardized Coefficients Standardized Coefficients
t Sig.
B Std. Error Beta
1 (Constant) 2.240 .831 2.696 .108
Brand .165 .048 .424 3.478 .201
Inovation .184 .081 .394 2.258 .326
Orientation .039 .097 .052 .401 .690
Source: Researchers, Data processed 2022
Based on the heteroscedasticity test using the Glejser method, the significance value for the brand image variable is 0.201, for the product innovation variable it is 0.326, and for the market orientation variable is 0.690.
because the significance value of the three variables is above 0.05, in accordance with the basis for decision making in the Glejser test, it can be concluded that there is no symptom of heteroscedasticity
4.2. Research Data Processing Results 1. Multiple Linear Regression
This test aims to see the effect of the dependent variable and the independent variable which shows a one-way relationship. The results of multiple linear regression analysis in this study can be seen in the following table:
Table 6. Multiple Linear Regression
Model
Unstandardized Coefficients
B Std. Error
1 (Constant) .739 .277
Brand Image .441 .127
Product Inovation .371 .163
Market Orientation .037 .097
Source: Researchers, Data processed 2022 Y = a + BX1 + BX2 + BX3 + e
Y = 0.739 + 0.441X1 + 0.371X2 + 0.037X3 + e The above equation can be explained as follows:
1. Constant value (a) of 0.739 means that if the regression coefficient of brand image, product innovation, and market orientation is constant, sustainable competitive advantage will increase by 0.739
2. Brand image regression coefficient of 0.441 means that if the brand image increases by one unit, it will increase sustainable competitive advantage by 0.441 with a note that product innovation and market orientation are considered constant.
3. Product innovation regression coefficient of 0.374 means that if product innovation increases by one unit, it will increase sustainable competitive advantage by 0.371 with a note that brand image and market orientation are considered constant.
4. Market orientation regression coefficient of 0.037 means that if market orientation increases by one unit, it will increase sustainable competitive advantage by 0.037 with a note that brand image and product innovation are considered constant
5. Hypothesis Testing Results
5.1. T Test (Partial)Table 7. T Test (Partial)
T test is to test how the influence of each independent variable individually on the dependent variable.
Model Unstandardized
Coefficients
Standardized Coefficients
t Sig.
B Std. Error Beta
1 (Constant) .739 .277 2.665 .009
Brand Image .441 .127 .423 3.469 .001 Product
Inovation
.371 .163 .398 2.277 .025
Market Orientation
.037 .097 .050 .383 .703
Source: Researchers, Data processed 2022 1. Based on the SPSS output above, it can be seen that:
a. Brand image significance value of 0.001 < 0.05 means that brand image has a partial effect on sustainable competitive advantage.
b. The significance value of product innovation is 0.025 <0.05, which means that product innovation has a partial effect on sustainable competitive advantage.
c. Market orientation significance value of 0.703 > 0.05 means that market orientation has no significant effect on sustainable competitive advantage.
2. The significance level of 5% testing includes two-way testing
Formula: df=n-k where n=many observations K=many variables(free and dependent) Df= 100-3=97 From these results with a significance level of 5%, the T table value is 2.1985
From the SPSS output above, it is known that the calculated T value of brand image is 2.665 > T table 2.1985, meaning that there is an influence between brand image on sustainable competitive advantage.
From the SPSS output above, it is known that the calculated T value of product innovation is 3.469> T table 2.1985, meaning that there is no influence between product innovation and sustainable competitive advantage.
From the SPSS output above, it is known that the calculated T value of market orientation is 2.277> T table 2.1985, meaning that there is no influence between orientation on sustainable competitive advantage.
The test criteria with a significant level (a) = 0.05 are determined as follows:
1. T count < t table, then H0 is accepted 2. T count> t table, then H0 is rejected
Thus, the first hypothesis which reads “Brand Image, Product Innovation, and Market Orientation has a partial effect on Sustainable Competitive Advantage” is empirically proven to be true.
5.2. F TEST (Simultaneous)
The F test is used to determine whether the independent variables simultaneously have a significant effect on the dependent variable. The degree of confidence used is 0.05. If the calculated F value is greater than the F value according to the table, then the alternative hypothesis is that all independent variables simultaneously have a significant effect on the dependent variable.
Table 8. F Test (Simultaneous) ANOVAb
Source: Researchers, Data processed 2022
1. Based on the SPSS output above, a significance value of 0.000 <0.05 means that simultaneously brand image, product innovation, and market orientation have a significant effect on sustainable competitive advantage.
2. Comparing the magnitude of the calculated F number with the F formula table:
df1=k-1 df2=n-k
Where k=number of variables (independent and dependent) n=number of observations/sample df1= 3-1 = 2
df2= 100-2 = 98
From these results with a significance level of 5%, the F table value is 3.90
From the SPSS output above, it is known that the calculated F value is 78,057 > from F table 3.90, it means that brand image, product innovation, and market orientation together have an effect on sustainable competitive advantage.
Thus, the second hypothesis which reads "Brand image, Product Innovation and Brand Image have a simultaneous effect on Sustainable Competitive Advantage" is empirically proven to be true.
6. Analysis and Discussion of Research Results
6.1. Testing the Effect of Brand Image on Sustainable Competitive Advantage of Mama Lemon dishwashing products in the city of Surabaya
Based on the test results, the tcount value for brand image against sustainable competitive advantage is 2,665 > T table 2.1985 with a significance of 0.001 < 0.05, which means that it is significant because consumers care about brand image. Thus the H1 hypothesis in this study is accepted, this shows that brand image has an effect on Sustainable Competitive Advantage for Mama Lemon dishwashing products in the city of Surabaya.
The results of this study are also in accordance with the results of previous research conducted by Putri et al. (2019) which stated that brand image, lifestyle and location had a positive and significant effect on purchasing decisions.
Model Sum of Squares df Mean Square F Sig.
1 Regression 20.500 3 6.833 78.057 .000a
Residual 8.404 96 .088
Total 28.905 99
6.2. Testing the Effect of Product Innovation on Sustainable Competitive Advantage for mama lemon dishwashing products in the city of Surabaya
Based on the test results, the tcount value for the product innovation variable on sustainable competitive advantage is 3.469> T table 2.1985 with a significance of 0.025 <0.05, which means that it is significant because consumers pay attention to product innovation. Thus the H2 hypothesis in this study is accepted, this shows that Product Innovation has an effect on Sustainable Competitive Advantage for mama lemon dishwashing products in the city of Surabaya.
The results of this study are also in accordance with the results of previous research conducted by (Putra Agritama, Huda, and Setiyo Rini 2018) which states that there is a simultaneous and significant effect of product innovation, market orientation, competitive advantage variables on marketing performance.
6.3. Testing the Effect of Market Orientation on Sustainable Competitive Advantage of Mama Lemon dishwashing products in the city of Surabaya
Based on the test results, the tcount value for the market orientation variable towards sustainable competitive advantage is tcount 2.277 > T table 2.1985 with a significance of 0.703 > 0.05, which means it is not significant. The results of this study indicate that market orientation has no significant effect on sustainable competitive advantage. Thus, the hypothesis H3 which states that market orientation has a partial effect on sustainable competitive advantage is not proven. Where the market orientation carried out by the mama lemon dish soap company has not been able to directly affect sustainable competitive advantage.
6.4. Testing the Effect of Brand Image, Product Innovation and Market Orientation on Sustainable Competitive Advantage of mama lemon dishwashing products in the city of Surabaya
Based on the test results, the fcount value for the purchase decision variable on price perception, product quality and service quality value fcount = 78,057> from F table 3.90 with a significance of 0.000 <0.05 which means it is significant, thus the mama lemon dish soap product has competitive advantage with other brand dishwashing products in the city of Surabaya. Thus hypothesis H4 in this study is accepted, this shows that Brand Image, Product Innovation, and Market Orientation together affect the Sustainable Competitive Advantage of Mama Lemon dishwashing products in the city of Surabaya
The results of this study are also in accordance with the results of previous research conducted by (Alwi and Handayani 2018) which stated that the market orientation variable had a positive influence on competitive advantage, as well as the product innovation variable had a positive effect on competitive advantage.
7. Limitation, suggestion and recommendation 7.1. Conclusions and Recommendations
7.1.1. Conclusion
This study aims to discuss the effect of Brand Image, Product Innovation, and Market Orientation on the sustainable competitive advantage of Mama Lemon's dish soap products in the city of Surabaya.
Based on the data analysis that has been done, the following conclusions can be drawn:
1. Brand Image variable (X1) partially affects sustainable competitive advantage tcount 2.665 > T table 2.1985 with a significance of 0.001 < 0.05, which means Brand Image affects sustainable competitive advantage of mama lemon dishwashing products in the city of Surabaya.
2. Product Innovation Variable (X2) has a partial effect on sustainable competitive advantage tcount 3.469 > T table 2.1985 with a significance of 0.000 <0.05, which means that Product Innovation affects sustainable competitive advantage for mama lemon dishwashing products in the city of Surabaya.
3. Market Orientation Variable (X3) is not proven to have a partial effect on sustainable competitive advantage tcount 2.277 < T table 2.1985 from ftable 3.90 with a significance of 0.703 > 0.05, which means that Market Orientation does not fully affect the sustainable competitive advantage of dishwashing products. mama lemon brand in the city of Surabaya.
4. Continuous Competitive Advantage (Y) variable has a simultaneous effect on Brand Image (X1) and Product Innovation (X2) and Market Orientation (X3). Where the value of fcount = 78,057> from ftable 3.90 with a significance of 0.000 <0.05, which means that jointly it has a significant effect on sustainable competitive advantage.
7.1.2. Suggestions
1. Brand Image becomes the main topic in creating Sustainable Competitive Advantage. It is hoped that the mama lemon dishwashing product can re-evaluate the marketing strategy that has been carried out. For example, it can be done by providing attractive packaging or breakthroughs or offering other attractive
innovations and market orientations while still prioritizing the quality of Mama Lemon brand dishwashing products in the city of Surabaya.
2. Policy on Brand Image, Product Innovation and Market Orientation both have a positive influence on the Sustainable Competitive Advantage of mama lemon dishwashing products in the city of Surabaya.
Therefore, the policy on these three variables must be a concern for policy makers in the company.
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