The Effect of Product Quality, Price and Sales Location of Nugin Lamping Tofu on Consumer Satisfaction

Mia Nur Yanti1 , Mutia Intan Savitri Herista2

Universitas Swadaya Gunung Jati, Indonesia

[email protected]

 

Keywords

Abstract

Product Quality, Price, Sales Location, Consumer Satisfaction

Tofu lanting nuggets are one type of snack food that is very popular with the public. Along with increasing consumer awareness of product quality, competition in the lanting tofu market is getting tougher. The focus of the study aims to determine the extent to which "the influence of product quality, price and sales location of Tofu Lamping Nugin" plays a role in influencing the level of customer satisfaction. This research was conducted using quantitative as a research method. Meanwhile, data collection was carried out involving questionnaire surveys and other literature studies. After the data was collected, it was analyzed using the regression test using SPSS software. The conclusion from the results of the research analysis shows that product quality, price and sales location of Lamping Nugin Tofu have an effect on customer satisfaction. In an effort to achieve an optimal level of customer satisfaction, companies need to focus on maintaining and improving product quality and determining prices that remain balanced with the value offered. Meanwhile, the sales location is still important to attract consumer interest, but this needs to be balanced by offering products of good quality and reasonable prices.

Corresponding Author: Mia Nur Yanti

E-mail: [email protected]

Description: https://jurnal.syntax-idea.co.id/public/site/images/idea/88x31.png

 

INTRODUCTION

The food industry is one of the key sectors in the Indonesian economy, playing an important role in driving economic growth (Sari, 2022). Along with the increase in population and changes in people's lifestyles, this sector continues to experience rapid development. One important product in the food industry is tofu, a traditional soy-based food. Tofu has long been a part of Indonesia's culinary culture consumed by various communities. The high demand for tofu not only reflects its popularity but also encourages the growth of the tofu industry, both on a large scale and on the scale of small and medium industries (IKM) (Amiruddin, 2020).

The tofu industry, including tofu SMEs, contributes significantly to the national Gross Domestic Product (GDP) and is a major source of employment and income for millions of people. With increasing population growth and increasingly diverse consumer preferences, the demand for food products, including tofu, continues to increase. This makes the food industry, especially tofu, a vital and growing sector in Indonesia. Thus making tofu part of Indonesia's culinary culture and consumed by various groups of people. The high demand for tofu encourages the growth of the tofu industry, both on a large scale and in small and medium industries (SMEs).

Small and Medium Industries (SMIs) have an important role in the Indonesian economy. SMEs are able to absorb a lot of labor and make a significant contribution to the national Gross Domestic Product (GDP) (Coordinating Ministry for Economic Affairs of the Republic of Indonesia, 2023). One type of SME that is growing rapidly is the tofu industry, especially in areas that have the potential for soybean production. One example is Kuningan Regency, which is known as the center of lamping tofu or small tofu production. The lamping tofu industry in Kuningan Regency has developed since the 1960s and has become a source of income for the local community (Nurhayati et al., 2012). However, the industry also faces various challenges, such as intense competition, fluctuations in raw material prices, and consumer demands for better product quality.

Based on the results of a survey conducted in April 2024, out of 10 tofu production houses in Kuningan, the tofu production house of Mr. H. Hartono and Mrs. Hj. Nurhayati is one example that faces challenges in this industry. This production house has been chosen as the object of research because they face the problem of increasing soybean raw material costs. One of the main problems faced by Mr. H. Hartono and Mrs. Hj. Nurhayati is the increasing cost of soybean raw materials. Over the past few years, soybean prices have fluctuated sharply. During the survey period, soybean prices increased by 20% compared to the previous year, reaching IDR 10,000 per kilogram from IDR 8,000 per kilogram. This increase puts great pressure on production houses' profit margins, as soybeans are the largest cost component in tofu production. Father H. Hartono explained that in order to maintain operations, they had to make adjustments by reducing the size of the tofu produced. This increase puts great pressure on the production house's profit margin, given that soybeans are the largest cost component in tofu production. Father H. Hartono explained that in order to maintain operations, they had to make adjustments by reducing the size of the tofu produced. While this helps to keep the selling price competitive, there are concerns about how this change may affect consumers' perception and satisfaction with their product. In addition, Manislor Village is also the center of the lamping tofu industry with many similar production houses offering tofu products to consumers. This intense competition puts additional pressure on Mr. H. Hartono and Mrs. Hj. Nurhayati to maintain the quality and price of their products to remain attractive to customers. In interviews, Mr. Hartono noted that competitors often offer lower prices or add innovations to their products, which makes it difficult to compete without sacrificing quality or profit margins in order to maintain consumer interest. Although their products are in high demand, the location of Mr. H. Hartono and Mrs. Hj. Nurhayati's tofu store in a less strategic area is another obstacle. They do not have easy access to the wider market in big cities, which limits their market reach. Most sales are made locally around Manislor village and through a few small retailers in Kuningan Regency. The following is a table that presents the monthly operational and financial data of the tofu production house of Father H. Hartono and Mrs. Hj. Nurhayati for the last year:

Figure 1 Tofu Production Data in 2023

Figure 2 Total Tofu Sales Revenue in 2023

Based on the table above, it can be seen that the tofu production of the production house of Mr. H. Hartono and Mrs. Hj. Nurhayati fluctuates from month to month. In March and May, tofu production reaches its peak with 300 kg and 310 kg respectively, while in January and December, production reaches its lowest point with 245 kg respectively. These fluctuations may be due to factors such as soybean harvest season, changing market demand, or internal production factors.

In general, one of the important factors influencing the success of the Lamping Nugin Tofu industry itself is the ability to meet customer satisfaction. Customer satisfaction is a crucial aspect in maintaining customer loyalty and ensuring business sustainability (Rastogi et al., 2024). However, in the case of the field itself, there are still many lamping tofu producers who face obstacles in meeting customer satisfaction. This can be caused by various factors, such as inconsistent product quality, less competitive prices, or less strategic sales locations. In addition, product quality is also one of the main factors that affects customer satisfaction (Afnina & Hastuti, 2018). Good quality lamped tofu, with a soft texture, distinctive flavor, and attractive appearance, will be more attractive to consumers. However, to produce good product quality, producers must pay attention to the production process, raw materials used, and post-production handling. In addition, price is also an important consideration for consumers. Prices that are too high can make consumers switch to other products, while prices that are too low can affect the perception of product quality. An attractive sales location is also an important factor in attracting consumer interest (Musyawarah & Idayanti, 2022).

To face these challenges, lamping tofu producers need to formulate the right strategy in an effort to increase consumer satisfaction. This strategy can include improving product quality, adjusting competitive prices, and selecting strategic sales locations (Ogunyemi, 2020). In addition, producers can also utilize technology and innovation to improve production efficiency and expand market reach.

Several previous studies have examined the factors that influence consumer satisfaction in the food industry. Research conducted by (Wicaksono & Nurseto, 2018), this study aims to explore the effect of product quality, product features, price, and consumer satisfaction on the repurchase intention of Xiaomi smartphone consumers in Semarang. The study shows that product quality, product features, and price have a significant effect on customer satisfaction. In addition, customer satisfaction also affects repurchase intentions. These findings indicate that to increase consumer repurchase intentions, smartphone manufacturers need to focus on improving product quality, developing unique product features, and setting prices that are in line with consumer perceptions. This is in line with research conducted by (Izzuddin & Muhsin, 2020), the factors that affect customer satisfaction at Mas Asep's Rabbit Satay business in Jember have been carefully analyzed. The findings of this study indicate that product quality does not have a significant effect on customer satisfaction. Nonetheless, focusing on improving service quality proved to be a very important factor in increasing customer satisfaction. In addition, the strategic location of the stall also does not have a significant impact on customer satisfaction. Based on these research studies, to achieve optimal customer satisfaction, producers or business owners need to understand well the industrial context and characteristics of the consumers they serve. Factors such as product quality, service, price, and location must be considered thoroughly and tailored to the needs and preferences of different consumers. Thus, effective marketing and product development strategies can be created to maintain and increase customer satisfaction in the long term.

Based on the description above, it can be seen that customer satisfaction is an important aspect that needs to be considered in the lamping tofu industry. However, research on the effect of product quality, price, and sales location on customer satisfaction in the lamping tofu industry, especially in the Kuningan Regency area. Therefore, this study aims to raise the title: THE EFFECT OF PRODUCT QUALITY, PRICE, AND SALES LOCATION OF NUGIN LAMPING TOFU ON CUSTOMER SATISFACTION.

This research is expected to contribute to the development of the lamping tofu industry in Kuningan Regency. The results of this study can be taken into consideration for Nugin Lamping Tofu producers in formulating the right marketing strategy to increase customer satisfaction. In addition, this study can also enrich the literature on the factors that influence consumer satisfaction in the traditional food industry, especially the Nugin Lamping Tofu industry.

This study aims to analyze the various factors that influence consumer satisfaction with Tofu Lamping Nugin products in Kuningan Regency. Specifically, this study will explore the effect of product quality, price, and sales location on customer satisfaction. First, this study will analyze how much influence the quality of the Nugin Lamping Tofu product has on customer satisfaction. Second, the research will examine the impact of product price on satisfaction levels. Third, the sales location will also be analyzed to determine its effect on customer satisfaction. In addition, this study aims to evaluate the simultaneous effect of the three variables of product quality, price, and sales location on customer satisfaction.

In terms of usefulness, this research has theoretical and practical contributions. Theoretically, it is hoped that this research can contribute to the development of science, especially in the fields of marketing management and consumer behavior. The results of this study can be a reference for further research relevant to the factors that influence consumer satisfaction in the traditional food industry. Practically, for Lamping Nugin Tofu producers, this research can provide useful information to formulate more effective marketing strategies to increase customer satisfaction. In addition, for the Kuningan Regency local government, the results of this study can serve as a consideration in designing policies and programs that support the development of the Lamping Nugin Tofu industry in the region. Finally, for the general public, this research can provide insight into the important factors that need to be considered when choosing and consuming quality lamping tofu products.

 

RESEARCH METHODS

Type of Research

The method used in this research is quantitative research method with descriptive and causal research types. Descriptive research is research that aims to describe or describe a phenomenon that is happening, in this case it is to describe product quality, price, sales location, and consumer satisfaction of Nugin's Lamping Tofu. The data used in this study are primary data obtained from distributing questionnaires to respondents, namely consumers of Nugin Tamping Tofu in Kuningan Regency. In addition, direct observation was also carried out to observe sales conditions and consumer behavior.

Place and Time

The location of this research was conducted at the Nugin Lamping Tofu Home Industry located in Manislor Village, Jalaksana District, Kuningan Regency. The reason the author conducted research at the Lamping Tofu Home Industry, is because the location of Lamping Tofu is very common to pass the Kuningan-Cirebon route with a position on the side of the road. And the author feels that the research I report is a suitable place to be researched. The research process is carried out through several stages with a time plan from March to June at this time.

Population and Sample

In the discussion of this study, the population refers to all consumers who have purchased the product �Tofu Lamping Nugin� in Kuningan Regency. The sampling technique used in this study is Stratified Random Sampling. According to Nasution (2003), Stratified Random Sampling is a sampling method in which a heterogeneous population is divided into layers (strata) that are completely separated from each other, and from each stratum a random sample can be taken. In this study, stratification was carried out based on the location of purchase of Nugin Lamping Tofu. The choice of this stratification is based on the consideration that sales location is one of the independent variables studied, and consumers in different locations may have different perceptions of product quality, price, and satisfaction.

Data Analysis Technique

After the research data is collected through questionnaires and field observations, the next step is to analyze the data. In this quantitative research aims to analyze the effect of independent variables (product quality, price, and sales location) on the dependent variable (customer satisfaction), with the right data analysis technique is very important to ensure that the research results are valid and reliable . Therefore, there are several stages of data analysis that must be carried out systematically. In this study, data analysis techniques that can be used include:

1.       Research Instrument Test

             a)     Validity Test: To measure the validity or accuracy of the research instrument (questionnaire) in measuring the variables being studied.

             b)     Reliability Test: To measure the consistency or reliability of research instruments.

2.      Classical Assumption Test

             a)     Normality Test: To test whether the data is normally distributed or not.

             b)     Multicollinearity Test: To test whether there is a correlation between independent variables in the regression model.

             c)     Heteroscedasticity Test: To test whether there is inequality in the variance of the residuals from one observation to another.

3.      Multiple Linear Regression Analysis, This multiple linear regression analysis is used to analyze the influence of independent variables (product quality, price, and sales location) on the dependent variable (consumer satisfaction) simultaneously.

4.      Hypothesis Testing

             a)     T-test (Partial): To test the influence of each independent variable on the dependent variable partially.

             b)     F Test (Simultaneous): To test the effect of independent variables simultaneously on the dependent variable.

             c)     Coefficient of Determination (R�): To measure the extent to which the model is able to explain the variation in the dependent variable.

The data analysis techniques above will be used to process data obtained from questionnaires and field observations, as well as to test the research hypotheses that have been proposed.

 

RESULTS AND DISCUSSION

Descriptive Test

Descriptive statistical tests are used to analyze and present data in an easily understood form. The goal is to display an overview of the data by calculating basic statistics such as mean, standard deviation, highest magnitude, and lowest magnitude (Mishra et al., 2019). The results of the descriptive test analysis, as shown in the following table:

 

 

Table 1 Descriptive Test Results

Descriptive Statistics

N

Minimum

Maximum

Mean

Std. Deviation

Product quality

118

22.00

65.00

57.2542

7.46523

Price

118

8.00

40.00

34.5932

5.54583

Sales location

118

10.00

30.00

26.4407

3.55312

Customer satisfaction

118

15.00

45.00

39.3475

5.92601

Valid N (list wise)

118

 

The results of the descriptive test analysis show that the data distribution pattern obtained by the researcher is:

  1. The product quality aspect (X1), in the data can be described as having the lowest value of 22 and the highest value of 65. Meanwhile, the average value of product quality is 57.254 and the standard deviation is 7.465.
  2. Price aspect (X2) shows that the product price has the lowest value of 8 and the highest value of 40. The mean value of the price is 34.5932 with a standard deviation of 5.54583.
  3. The sales location aspect (X3) has the lowest value of 10 and the highest value of 30, with a mean value of 26.4407 and a standard deviation of 3.55312.
  4. The Consumer Satisfaction Aspect (Y) has the lowest value of 15 and the highest value of 45, with a mean value of 39.3475 and a standard deviation of 5.92601.

Validity Test

Validity test is applied to assess whether a questionnaire is valid. A questionnaire is considered valid if each question can accurately describe or measure the aspect intended to be assessed by the questionnaire. Variables are considered valid if they can be determined through a significance level <0.05.

Table 2 Validity Test Results

Correlations

Product quality

Price

Sales location

Customer satisfaction

Total

 

Product quality

Pearson Correlation

1

.841 **

.877 **

.794 **

.946 **

 

Sig. (2-tailed)

 

.000

.000

.000

.000

 

N

118

118

118

118

118

 

Price

Pearson Correlation

.841 **

1

.879 **

.841 **

.945 **

 

Sig. (2-tailed)

.000

 

.000

.000

.000

 

N

118

118

118

118

118

 

Sales location

Pearson Correlation

.877 **

.879 **

1

.805 **

.937 **

 

Sig. (2-tailed)

.000

.000

 

.000

.000

 

N

118

118

118

118

118

 

Customer satisfaction

Pearson Correlation

.794 **

.841 **

.805 **

1

.919 **

 

Sig. (2-tailed)

.000

.000

.000

 

.000

 

N

118

118

118

118

118

 

Total

Pearson Correlation

.946 **

.945 **

.937 **

.919 **

1

 

Sig. (2-tailed)

.000

.000

.000

.000

 

 

N

118

118

118

118

118

 

**. Correlation is significant at the 0.01 level (2-tailed).

 

Based on table 2 it is found that the significance value (2-tailed) of the correlation for all items is below 0.05. Thus, this value indicates that all questions in the questionnaire are considered valid and the questionnaire is considered a valid instrument to be used in this study.

Reliability Test

Reliability refers to the extent to which a measuring instrument produces consistent responses over time and across situations. Reliability testing aims to assess the consistency of respondents' responses to the questionnaire. Reliability testing utilizes "Cronbach's alpha statistics" with the provision that a variable is considered reliable if the value can exceed 0.6.

Table 3 Results of Reliability Test

Reliability Statistics

Cronbach's Alpha

N of Items

.931

4

Based on the results of the reliability test, it was found that the Cronbach Alpha value was 0.931, because this value exceeded 0.600, the questionnaire was considered to have a good level of consistency and could be relied on for use in subsequent research.

Multiple Linear Regression Test

Multiple regression analysis is used to assess whether there is a relationship between product quality (X1), price (X2) and sales location (X3) on consumer satisfaction (Y). The multiple linear regression equation in this study was obtained through data processing using SPSS software, as follows:

Table 4 Multiple Linear Regression Test Results

Coefficients a

Model

Unstandardized Coefficients

Standardized Coefficients

t

Sig.

B

Std. Error

Beta

1

(Constant)

3.286

2.278

1,442

.152

Product quality

.178

.083

.224

2.135

.035

Price

.557

.113

.521

4.928

.000

Sales location

.250

.199

.150

1.256

.000

a. Dependent Variable: Consumer satisfaction

The results of the study indicate that the significance value for the product quality variable is 0.035, while for the price and sales location variables is 0.000. Since these values are <0.05, this indicates a significant relationship between product quality, price, and sales location on consumer satisfaction.

Coefficient of Determination Test

The coefficient of determination (R�) is a measure that shows how much of the variation in the data can be explained by the regression model. The R� value provides information about the extent to which the linear regression model fits the data, measuring the level of significance or suitability of the relationship between the independent and dependent variables.

Table 5 Results of Determination Coefficient Test

Model Summary

Model

R

R Square

Adjusted R Square

Std. Error of the Estimate

1

.858 a

.737

.730

3.07955

a. Predictors: (Constant), Sales location, Product quality, Price

The results of the determination coefficient test in table 6 show an R Square value of 0.737, so it can be concluded that the variables of product quality, price and sales location affect consumer satisfaction by 73.7% and the rest is influenced by other factors.

 

Discussion

The Effect of Product Quality on Customer Satisfaction

The findings of the research analysis indicate that "the product quality of Nugin's Lamping Tofu has a significant influence on customer satisfaction". This finding indicates a relationship if the better the product quality, the result can also increase the level of customer satisfaction. This relationship is strengthened by the view of Kotler and Armstrong (2012), who state "that if product quality is lower than consumer expectations, they will feel dissatisfied or disappointed" (Kotler & Amstrong, 2014). This means that explains when the product has high quality or can exceed the expectations that consumers have. As a result, consumers feel satisfied with the product because it is appropriate or better than what they expected.

This finding is in line with other findings, such as by Lenzun et al. (2014) found that the product quality factor significantly influenced consumer satisfaction with Telkomsel prepaid cards in Winangun 1 Village (Lenzun et al., 2014). In addition, Sari (2019) also found similar results for customers at XYZ cake shop in Jakarta (Sari, 2022).

Based on these findings, it is important for companies to maintain and improve product quality, considering that this factor is one aspect of meeting the needs and expectations of buyers. When product quality is better at meeting buyer expectations, the greater the level of satisfaction that consumers will feel. If marketers ignore aspects of product quality, they risk losing consumer loyalty, which can lead to a decline in sales. Conversely, by focusing on improving quality, consumers will be more likely to make purchases with confidence and feel satisfied with the product they get.

The Effect of Price on Consumer Satisfaction

The findings of the research analysis resulted in "that the price of Nugin Lamping Tofu has a significant effect on customer satisfaction". These findings explain that if the price is efficient and in line with the benefits of the product, it can increase customer satisfaction. According to Yusuf et al. (2022), if the price of a product is considered reasonable and comparable to the benefits obtained, as a result, buyers can feel satisfaction (Yusuf et al., 2022). This statement shows that if the price set is comparable to the value offered by the product, customers tend to feel satisfied with their purchase.

This finding is reinforced by the findings of other studies, such as in (Lenzun et al., 2014), found that the price factor significantly influences customer satisfaction on Telkomsel prepaid cards in Winangun 1 Village. Research by Yanuar et al. (2017) strengthens these findings, with the same findings at Optik Marlin Jember Branch, while Silvia's research (2020) reveals similar results in buying Fortune cooking oil at the Mekar Wangi minimarket (Yanuar et al., 2017).

Consumers tend to feel satisfied if they can buy products at prices that are more reasonable and more economical than the prices of competitors. Conversely, if the price of the product is too high and difficult for consumers to reach, they may switch to competitors who offer more competitive prices (Khotimah & Doddi Prastuti, 2020). Based on these findings, marketers need to consider an optimal pricing strategy, ensuring that product prices are in line with the benefits offered and are competitive in the market, can increase consumer satisfaction and generate repeat purchase interest.

The Effect of Sales Location on Consumer Satisfaction

The findings in this study indicate that the sales location of Tofu Lamping Nugin has a significant influence on customer satisfaction. These results indicate that a strategic location directly affects the level of customer satisfaction, where consumers are more satisfied when they can easily access the products offered.

 

 

Strategic sales location is one of the main factors in marketing, because ease of accessibility for consumers greatly influences purchasing decisions. According to Kotler and Armstrong (2016), a strategic location can increase consumer visits to points of sale, which in turn increases purchasing opportunities (Kotler & Keller, 2016). The easier the product can be accessed, the higher the level of consumer comfort and satisfaction with the product.

Other research that supports this finding is a study by Berman and Evans (2013) which states that strategic sales locations not only influence purchasing decisions, but also contribute to long-term consumer loyalty. Consumers tend to choose a point of sale that is easy to reach because this saves them time and effort. This is especially important in a competitive market, where consumer convenience is one of the key differentiating factors.

In addition, Peter and Olson (2010) assert that an easily accessible location increases consumers' positive perception of the brand. Consumers who feel comfortable with access to a particular product are more likely to develop loyalty to that brand, which in turn increases their level of satisfaction.

Thus, a strategic sales location is critical to maintaining and increasing consumer satisfaction. Proper location placement not only affects accessibility, but can also influence consumers' perception of product value, which in turn affects their level of satisfaction and brand loyalty.

 

CONCLUSION

The research findings show that product quality, price, and sales location of Tofu Lamping Nugin significantly affect customer satisfaction. To achieve an optimal level of customer satisfaction, companies need to pay special attention to efforts to maintain and improve product quality, which is a major factor in determining customer satisfaction. In addition, pricing that is balanced with the value offered is very important, because consumers tend to feel more satisfied when they get quality products at reasonable prices. While sales location remains an important element in attracting consumers, its effectiveness must be supported by good product quality and competitive pricing. Therefore, an effective sales location serves not only to attract consumers, but also to provide continuous satisfaction through good quality and price.

Suggestions for further research are as follows: First, future research can consider adding other variables that might affect customer satisfaction, such as after-sales service, customer loyalty, and brand image. Second, the use of qualitative methods can be developed to gain deeper insights into consumer preferences for Nugin Lamping Tofu products. In addition, a comparative study between Tofu Lamping Nugin and similar products from competitors can be conducted to determine the competitive position of the product in the market. Research can also be focused on specific market segments, for example by age, income, or geographic location, to see how they perceive product quality, price, and sales location. Finally, long-term research is needed to analyze the effect of product quality, price, and sales location on customer satisfaction in a sustainable manner over time.

 

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