The Influence of Innovation in Product Excellence, Product Price, and Product Credibility Towards Customer Purchase Intention in Herbal Tea Products

Abstract

The development of herbal tea products in Indonesia has great potential due to plenty of natural commodities found in this country and the habit of Indonesian citizens that make drinking tea a lifestyle. However, the growth of business that is significantly increased shows a very strict competition. To survive and win the market, companies including the herbal tea industry must conduct product innovation based on customer preferences to improve the quality of goods or services offered. By using the multi linear regression method, the influence of product innovation towards purchase intention in herbal tea products is positively significant at 77.9%. Moreover, the product innovation variables in the form of product excellence, product price, and product credibility can explain about 60.1% towards the purchase intention. The product credibility variable has the greatest influence when compared to others. Using simple linear regression, it is also found that the dimensions of product scent, suitability between product price and benefits, and product information are the most significant dimensions compared to the others. The results of this study can be used to build business strategies for herbal tea companies to innovate products that are in accordance with what their customers preferences.