Mediation Role of Brand Image and Brand Quality on the Effect of Sales Promotion on Purchase Decisions: Study of Indonesian MSMEs

Abstract

Micro, Small, and Medium Enterprises (MSME) are indicators of a productive and healthy Indonesian economy regarding people's well-being. This study aims to investigate the function of brand image and brand quality as a mediator in the influence of sales promotion on customer choice to purchase MSME goods in Indonesia. A cross-sectional design was adopted for this survey investigation. Simple random selection was used to choose 150 respondents as a sample of Indonesian MSME entrepreneurs involved in providing products and services. A closed questionnaire was utilized as the study instrument. Partial Least Squares Structural Equation Modeling was utilized to analyze the data (SEM-PLS). The findings revealed that while brand image had no significant influence on purchase decisions, it considerably affected sales promotion. Brand quality has no bearing on purchase decisions. Sales promotion has a major influence on brand quality, and sales promotion greatly affects purchase decisions. Brand image and quality are important in helping Sales Promotion make better product purchase decisions. Because changing brand image and brand quality may dramatically improve sales promotions that affect Product Purchase Decisions.