Distribution of Paper Food Packaging in Indonesia: B2b Considerations of Quality, Price, and Image in Purchase Decisions

Abstract

The food and beverage industry is crucial to Indonesia's economy, contributing 39.10 percent of the GDP in 2023. To boost competitiveness, the Ministry of Industry is encouraging the adoption of digital technology and innovation. This study investigates the factors affecting decisionmaking in the distribution of paper food packaging within a B2B context in Indonesia, focusing on the impact of packaging quality, competitive pricing, and brand image on purchasing decisions by food companies. A descriptive quantitative research method was used, with data collected from 91 participants, selected through the Slovin formula. These participants are decision-makers within food packaging companies, with expertise in packaging quality, pricing, and brand image. Data were gathered via structured questionnaires and analyzed using partial least squares (PLS). Results indicate that product quality significantly affects brand image but does not directly influence purchase decisions. Price impacts both brand image and purchase decisions, while brand image itself does not significantly influence purchase decisions. However, the indirect effect of price on purchase decisions through brand image is significant. The study concludes that pricing perception plays a more crucial role in purchasing decisions than product quality in the paper food packaging industry. Maintaining a strong brand image is essential for building customer trust and loyalty. Limitations include the relatively small sample size and the specific focus on the Indonesian paper food packaging industry, which may affect the generalizability of the findings. Further research is needed to validate and expand upon these results.