Indonesian Journal Of Business And Economics

THE INFLUENCE OF BRAND IMAGE AND PRODUCT DESIGN ON PURCHASE DECISIONS FOR BUAHVITA THROUGH PRODUCT QUALITY

Thu, 26 Dec 2024 00:45:10 +0700

Through product quality, this study examines how brand perception and product design affect consumers' decisions to buy Buahvita. The purchase decision is the study's dependent variable, and brand image and product design are its independent factors. On the other hand, product quality serves as a moderating factor. One hundred questionnaires from residents of one of Kediri City's housing complexes were gathered and processed. Using the convenience sampling approach, which selects people who are available and in place throughout the research period, the researcher selects the closest person to serve as a research sample until the target sample size is reached. This study was carried out in phases. Finding hypotheses in the literature or by employing descriptive statistics and gathering information from the items under study is the first step. The second stage is to test the feasibility of the data using the Validity Test and Reliability Test. The third stage is the hypothesis testing stage both partially and simultaneously. Furthermore, the adjusted determination coefficient and regression equation from the research data are calculated. The results of this study indicate that product design has a significant effect on purchasing decisions, brand image has a significant effect on purchasing decisions. Product design and brand image together have a significant influence on purchasing decisions. Product quality as a moderating variable is not able to strengthen (weaken) product design on purchasing decisions

THE EFFECTIVENESS OF VIRAL MARKETING ON PURCHASE DECISIONS THROUGH CUSTOMER TRUST ON THE TOKOPEDIA PLATFORM

Diky Angga Hendrawan, Anisah Nabilah, Ahmad Yahya Hamiduddin, Harto Harto — Thu, 26 Dec 2024 00:00:00 +0700

Viral Marketing is a type of marketing that is low-cost because it relies on social media to spread information. The phenomenon of online shopping is increasingly becoming the choice of many people, because shopping online can save time without having to go to a physical location to shop. There are several factors that consumers need to consider before making a purchasing decision, such as trust, where in making online transactions it is important to have certainty, ease in finding the desired product, and clear information about the product and how to buy. This study was conducted using descriptive and verification methods, which then produced conclusions and suggestions. Samples were collected using the Incidental Sampling method, with a total of 205 respondents. Based on the analysis that has been done, this study proves that Viral Marketing has a significant influence on Customer Trust. Furthermore, Customer Trust also has a significant influence on Purchasing Decisions. In addition, Viral Marketing has a significant influence on Purchasing Decisions.

Do the Insurance Companies Lose Trust in Bangladesh? Empirical Evidence from the Customer & Managerial Perspectives.

Tanmay Biswas — Thu, 26 Dec 2024 00:45:20 +0700

This study aims to ascertain the factors influencing customer satisfaction and trust in insurance companies in Bangladesh, while also identifying the underlying reasons for the erosion of customer trust in insurance services from a managerial perspective. The research adopted an empirical survey design, incorporating a questionnaire that featured an interview component, with participation from 250 individuals. The analysis of partial least squares structural equation modeling (PLS-SEM) was conducted utilizing Smart-PLS 4.0 software, which facilitated the assessment of frequency, reliability, validity, and hypothesis testing. In the customer survey, an empirical and descriptive method was employed from a managerial perspective. A positive correlation was observed between the SERVQUAL characteristics of tangibility, responsiveness, empathy, and assurance of service quality, alongside the satisfaction and trust exhibited by customers. The findings of the study indicate that the relationships between Assurance and overall customer satisfaction (t=4.463, β=.072, p<0.05), Empathy and overall customer satisfaction (t=2.167, β=0.067, p<0.05), responsiveness and overall customer satisfaction (t=2.512, β=.069, p<0.05), tangible and overall customer satisfaction (t=4.299, β=0.058, p>0.05), as well as the relationship between overall customer satisfaction and Trust (t=18.258, β=0.04, p>0.05) exhibit statistical significance. Furthermore, the association between reliability and overall customer satisfaction (t=1.066, β=0.079, p>0.05) is statistically significant. Additional evidence indicating customer dissatisfaction with products exhibiting varying levels of dependability is the observed negative correlation between dependability and satisfaction. The findings of this study indicate that the reliability of insurance plans does not influence the level of satisfaction that customers perceive they have attained. Upon comparison with the acceptance criterion of 1.96, the T statistic for the reliability hypothesis H2 is determined to be 1.066, which is below the specified value. The P value of 0.286 exhibits a considerable divergence from the established threshold of significance, which is set at 0.05. Both of these numbers fall below the requisite conditions necessary for acceptance. The primary limitation of the study pertains to the restricted geographical scope of the research conducted. The research presents numerous implications for researchers, insurance providers, leadership groups, customer service representatives, stakeholders, and customers in identifying and assessing the factors that influence the quality of insurance services. This understanding is essential for the formulation of strategies and policies aimed at enhancing insurance services.

Effects of Loan Terms and Borrowers’ Behavior on Non-Performing Loans in Nigeria's Microfinance Banks

Abimbola Oluwaseyi Ademola — Thu, 26 Dec 2024 00:45:22 +0700

This study investigated the effect of loan terms and borrowers' behavior on NPLs in Nigeria’s Microfinance banks. Specifically, it explored the influence of interest rates, repayment periods, loan conditions, overleveraging, loan diversion, and financial literacy, on the NPLs of 25 selected MFBs in South West Nigeria. Spearman correlation and multiple regression analyses were used to analyse the data. The results indicated that high interest rates and short repayment periods were positively linked to the increase in NPLs, meaning that borrowers have difficulties with high borrowing costs and tight repayment schedules. Moreover, rigid conditions of the loans further increased the level of NPLs due to lack of borrower flexibility. Overleveraging and loan diversion also proved to be significant enhancers of NPLs, while financial literacy turned out to reduce default risks. The study emphasizes the need to adopt flexible loan conditions and make sure clients are more financially literate, which would reduce default rates and increase sustainability for MFBs. These findings have important implications for policymakers and financial institutions concerned with enhancing the resilience of the microfinance sector in Nigeria.

Determining Factors In Adoption of Accounting Application

Siti Nuke Nurfatimah, Teti Rahmawati, Herma Wiharno, Fahmi Yusuf, Erlan Darmawan — Sun, 29 Dec 2024 07:08:13 +0700

The study aims to test the determinant MSME players in the adoption of an accounting application in MSMEs. The low intention of MSME players in using the Business Financial Record Application is not in line with the increase in the number of MSMEs every year. This study using Unified Theory of Acceptence and Use of Technology (UTAUT) Model Venkatesh, Morris, Davis, and Davis (2003) with the CIA Security Information Concept (Qadir & Quadri, 2016) to test the intention and use of accounting applications by MSME players. This study uses a combination of the two constructs as previously used in the study Salam and Ali (2020). The sample is 100 respondents, data processing was carried out by testing the validity and reliability and followed by model tests using PLS analysis from the SEM model. The results of the study showed that Performance Expectancy, Perceived Availability, Perceived Confidentialy have an effect on Intention to Use. Meanwhile, the facilitating condition does not affect actual use and Perceived Availability and Perceived Confidentiality also do not affect the intention to use. This study proves that the intention in using accounting recording applications in MSMEs is highly dependent on the environment, both from the community, relatives and even the government. When they start using and get convenience according to their expectations, they tend to continue using the application. The implication of this study is that the phenomenon of low use and adoption of business digital financial applications is one of the tasks for the government, especially in improving the regional economy. By using a digital financial recording application, MSMEs will get a lot of convenience, especially in terms of capital. MSMEs that have strong capital will be able to increase the income of a region.

Cross-Cultural Influences on Management Practices in Chinese Companies in Zimbabwe: Views from Non-Management

Eresi Muzvondiwa, Nothando Msipah, Ignatious Nzero, Kabiat Mukuze — Thu, 26 Dec 2024 00:45:17 +0700

ABSTRACT

This study explores how the cross-cultural influences management practices of Chinese companies operating in Zimbabwe, employing a qualitative research approach and a case study design. Focusing on two Chinese companies, the researchers conducted semi-structured interviews with 18 non-management employees. Non-management employees have unique perceptions that reflect their personal experiences and cultural context. Their viewpoints differ significantly from those of management, who might interpret practices through a lens shaped by their roles and responsibilities.

Thematic analysis revealed significant findings regarding the impact of traditional Chinese cultural values, particularly Confucianism, on management practices. While hierarchical structures promoted clarity, they also stifled creativity and open communication, leading to employee frustration. Participants expressed a preference for collectivism but highlighted the challenge of balancing individual aspirations with group goals, resulting in feelings of underappreciation. Additionally, perceptions of top-down management and cultural misunderstandings, particularly regarding communication styles and concepts of time, emerged as critical barriers to effective management. Participants advocated for a more inclusive management approach that recognizes individual contributions and fosters constructive dialogue. The study emphasizes the need for cultural awareness and training to bridge communication gaps and enhance organizational cohesion. By illuminating these cross-cultural dynamics, this research contributes to a deeper understanding of management practices in a globalized context, offering insights into how Chinese companies can adapt their strategies to better align with Zimbabwean employees' expectations.

Keywords: Cross-culture, Confucianism, Chinese companies, Employees’ perceptions, Management practices

MODERATING ROLE OF BUSINESS AGE IN SMES’ COMPLIANCE WITH SAK ETAP FINANCIAL REPORTING

Amir Hamzah, Dadang Suhendar, Sani Rahmasari, Nani Sumarni — Thu, 26 Dec 2024 00:45:20 +0700

This study aims to analyze the factors influencing financial reporting in fashion SMEs in Kuningan Regency in relation to the application of SAK ETAP standards, with business age as a moderating variable. The research uses a quantitative approach with Partial Least Squares Structural Equation Modeling (SmartPLS), which enables the examination of relationships between variables as well as the moderation of business age. The sample consists of 120 respondents, who are owners or managers of fashion SMEs that have been operating for more than one year and have basic accounting knowledge. The results show that accounting understanding has a significant effect on financial reporting, while owner’s bookkeeping skills and business age do not have a significant direct impact. However, business age strengthens the effect of accounting understanding on financial reporting, indicating that the experience and stability of older businesses enhance the application of accounting principles. These findings provide insights for the development of policies and training programs to improve SMEs' compliance with financial reporting standards.

Keywords: financial reporting, accounting understanding, owner’s bookkeeping skills, business age, SAK ETAP

Development of Information Technology, Business Innovation, and Organizational Models Based on Local Wisdom in Improving MSME Performance (Case Study of Kuningan Regency MSME Actors

Wely Hadi Gunawan, Rina Masruroh, Munir Nur Komarudin — Sat, 28 Dec 2024 00:00:00 +0700

This research aims to analyze the influence of information technology development, business innovation, and local wisdom-based organizational models on the performance of MSMEs in Kuningan Regency. MSMEs have a strategic role in Indonesia's economic development, especially in terms of contribution to GDP and employment. However, challenges such as low digital literacy, limited infrastructure and minimal use of technology often hinder the competitiveness of MSMEs.

In this context, the integration of modern technology with local wisdom is a relevant approach to improving the performance of MSMEs. This research uses a quantitative approach with the Structural Equation Modeling (SEM) method to analyze the relationship between the variables studied. The research results show that business innovation has a significant influence on organizational models, while information technology development does not have a significant influence on organizational models or MSME performance. On the other hand, an organizational model based on local wisdom has been proven to significantly improve the performance of MSMEs.

It is hoped that this research can provide practical and theoretical contributions, especially in supporting the development of competitive and sustainable MSMEs through the application of information technology, innovation based on local wisdom, and adaptive organizational models. Strategic recommendations include increasing digital literacy, business innovation training, and strengthening collaboration between MSMEs and other stakeholders.

Keywords: Information Technology, Business Innovation, Organizational Model, MSME Performance