Abstract
The success of the business cannot be separated from an implementation and utilization of information technology encouraging the creation of a competitive business which can be seen from the effectiveness of its supporting system. Currently, many business owners are inspired to improve their business with digitalization. The 4.0 industry revolution does not only occur in the government environment but also transpires other businesses with traditional culture background. A unique custom contributes advantages to Yogyakarta Special Region (Daerah Istimewa Yogyakarta) which produces traditional hand-drawn batik. The batik pieces are then processed into kemben. This study aims to find out the role of customer satisfaction in order to improve competitiveness through product quality, service quality, and price. This study used a snowball sampling method of 200 respondents analyzed using SEM (Structural Equation Modeling). The result showed that product quality and price affect customer satisfaction through service quality. Eventually, the increasing product quality will provide benefits for Micro Small Medium Enterprises (MSMEs) of kemben in Yogyakarta Special Region and bring improvement for the local economy.
Highlights
Digital technology is one of the main drivers of world economic development
This study aims to examine the effect of product quality and price on customer satisfaction through service quality
The average score of each answer provides a comprehensive description of the product quality, price, service quality, and customer satisfaction
Summary
Digital technology is one of the main drivers of world economic development. Almost all countries are competing to observe digital transformation quickly. The increasing unemployment rate caused by the reduction in human services, increasing factory waste, and decreasing socialization are among the particular concerns of the community This change brings us to the fourth wave industrial revolution or Industry 4.0, which is the latest trend in the world of such sophisticated technology. Companies are starting to carry out a digital transformation from traditional marketing patterns to a sophisticated and virtual world where they can communicate to change the character and behavior of consumers. The Ministry of Industry noted that the export value of batik and batik products reached USD 51.15 million in October 2017 This number increased by 29.8% from the achievement in the first semester of 2017 amounting to USD 39.4 million. This research uses a survey approach method to explore the simultaneous effect of kemben production in increasing MSMEs in Yogyakarta Special Region [2]
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