Abstract

Local food industry in Indonesia has become the belle of the uniqueness or distinctiveness of each region of the country's remote areas. Of course, by introducing diverse cultures based on local wisdom, local food as one part regardless separated from the increase in the country's economy, especially in the various regions in Indonesia. The purpose of this study was to determine and analyze the effect of product innovation capabilities on product differentiation and product differentiation influence on the performance of marketing. This type of research is inferential with a quantitative approach. Sampling was done by using Non-Probability or purposive sampling a total of 120 samples. Collecting data using questionnaires as research instrument. Data analysis using descriptive analysis and test equipment used is Path Analysis.Hypothesis testing using the F test and t test. The results showed that (1) there is a significant and positive effect of product innovation capabilities on product differentiation; (2) there is a positive and significant effect on the performance of product differentiation marketing. The values R 2 is found to be 0.934, which means the amount of exogenous variables on endogenous variables by 93.4%. Keywords : Ability Product Innovation, Product Differentiation, and Marketing Performance

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