Journal of Science Education and Management Business (JOSEAMB) Vol.
No.
2, tahun 2025, hlm.
ISSN: 2828-3031
THE INFLUENCE OF INNOVATION AND MARKETING
STRATEGY ON CONSUMER PURCHASING POWER IN
MARKETS IN DHARMASRAYA REGENCY
Revina marlin1.
Rika rohim2.
Yatna yenti3.
Tuti susanti 4 .
Havidz aima 5 Universitas Putra Indonesia YPTK Padang Info article Article history:
Received: Juny 23, 2025 Revised: July 20, 2025 Accepted: Agust 15, 2025 Published: Agust 30, 2025 Keywords:
Innovation Marketing stratgy Consumer Purchasing Power
Pasar Dharmasraya
ABSTRAK
This article examines the influence of innovation and marketing strategy on consumer purchasing power in the markets of Dharmasraya Regency.
Using a quantitative approach, the research involved 30 randomly selected respondents from the local population.
The findings indicate that while innovation is important for creating competitive advantages, it does not have a significant impact on consumer purchasing power.
In contrast, marketing strategy has been shown to have a significant effect, suggesting that effective marketing approaches can enhance consumer experience and satisfaction.
Consumer purchasing power is influenced by various factors, including economic conditions and community habits.
These findings emphasize the importance of appropriate marketing strategies in enhancing purchasing power, while innovation must still be pursued to remain competitive in an increasingly tight market.
Ini adalah artikel akses terbuka di bawah lisensi CC BY-SA.
Penulis yang sesuai:
Revina marlin Universitas Putra Indonesia YPTK Padang Email: revinamarlin0202@gmail.
Introduction The consumption patterns of the Indonesian populace are not significantly influenced by the segmentation of the economy.
This fact, whether accurate or not, contributes to the country's economic growth.
Indonesia's diverse business sector, which varies in type and level of sophistication, provides consumers with a wide range of options, allowing them to make choices based on their needs and capabilities.
For example, in the clothing sector, some customers are willing to pay a premium for high-quality, branded goods, while others may not be willing to invest as much in such products.
Additionally, some consumers may only be inclined to pay lower prices and may not prioritize branded or high-quality items.
Micro.
Small, and Medium Enterprises (UMKM) play a crucial role in the national economy and are strategically positioned to contribute to a more balanced, mature, and stable economic environment.
To achieve this goal, domestic economics must be supported by social economics, promoting a competitive, fair, reliable, accountable, and transparent economic system in both domestic and international markets (M.
Fathrezza Imani.
Khoirul Fikri, and Almas Filzah 2.
Homepage jurnal: https://rcf-indonesia.
org/jurnal/index.
php/JOSEAMB/index A ISSN: 2828-3031 Business competition can no longer be avoided in the technology era.
All business players must have new breakthroughs to remain competitive.
Each entrepreneur is required to identify opportunities and potential risks, as this is essential to avoid falling behind in the competition.
marketing, a multitude of brilliant ideas and accurate calculations are needed to yield results from creative ideas and innovations in services that can create a unique and attractive image and value in the eyes of consumers (Utaminingsih, 2.
Innovative ideas must be continuously pursued and developed within a business to create a competitive advantage.
Innovation can also help combat the increasingly competitive nature of business.
Creating elements of creativity can generally be observed in the livelihoods of the surrounding community, where seeking new ideas can lead to changes that present opportunities for enhancing the purchasing power of the community.
The diverse occupations within the community support the existing economic momentum, particularly in Dharmasraya Regency, which is the focus of this research (Alfon Tuhoni Zebua1 2.
According to Kotler and Keller, marketing strategy is a process of preparing and implementing decisions related to the target market, value commitment, and marketing mix to achieve competitive advantage.
An effective marketing strategy allows businesses to reach their customers more accurately and efficiently, as well as create positive experiences that contribute to customer satisfaction (Aryanti and Ali 2.
Businesses that are prevalent in Indonesia and can survive economic crises are Micro.
Small, and Medium Enterprises (UMKM).
UMKM are closely related to the community and have a significant impact, acting as one of the drivers of the economy.
Therefore, they are a focus of development programs designed by the government to continue to advance and grow.
UMKM operate in various sectors, including culinary .
ood and beverage.
, fashion, agribusiness, handicrafts, electronics, furniture, small shops, and daily stalls, among others.
They typically have limited capital sourced from the owners.
The resilience and ongoing growth of UMKM can serve as a driving force for building and enhancing the national economy.
This can be seen from the advantages of UMKM:
first, they easily adapt to market fluctuations and demand, making them quite flexible.
Second, they can significantly contribute to exports and trade due to their wide diversity.
Third, they can quickly create job opportunities compared to other business sectors.
In Dharmasraya Regency, efforts are being made to implement effective and efficient UMKM operations (Arsya n.
Literature Reviwe Based on the research conducted by (M.
Fathrezza Imani.
Khoirul Fikri, and Almas Filzah 2.
the results show that creativity has an impact on consumer purchasing power with a significance value of 0.
Innovation significantly affects consumer purchasing power at a value of 0.
008, and marketing strategy significantly influences consumer purchasing power with a value of 0.
The variables of creativity, innovation, and marketing strategy collectively affect consumer purchasing Based on the research conducted by (Alfon Tuhoni Zebua1 2.
the findings indicate that product innovation influences consumer purchasing decisions to a certain extent.
Purchasing decisions are not partially influenced by marketing strategies.
Meanwhile, at Javas Cycle cafy in Jambi City, customer purchasing decisions are affected by both marketing strategies and product innovation.
Innovation According to (Pebriani and Busyra 2.
innovation is an effort to create or reconstruct new products developed by a company, such as older products that no longer appear attractive in the Product innovation is the company's effort to process both existing products and create new product variations aimed at capturing market share.
Indicator of innovation a Quality b Product Variants c Style and Design JOSEAMB Vol.
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Tahun 2025
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ISSN: 2828-3031
Marketing Strategy Marketing strategy is a series of goals and objectives, policies, and guidelines that provide direction for marketing efforts over time, at each level and reference point, as well as their It is primarily a response by the company to the constantly changing environment and competitive conditions (Hulu.
Dakhi, and Zalogo 2.
Indicator of marketing strategy a Product Life Cycle b Competitive Position in the Market c Economic Situation Consumer Purchasing Power Consumer purchasing power refers to the ability of consumers, in this case the community, to make purchases of goods and services they need.
An increase or decrease in purchasing power is indicated by changes in consumer behavior.
Purchasing power increases when it is higher compared to previous periods, while a decrease can be identified when consumers have less ability to buy compared to earlier periods.
The ability of consumers to purchase a large quantity of goods in a market is influenced by price levels, income levels, and specific time periods.
Generally, purchasing power is defined as an individual's capacity to consume a product.
There are variations in purchasing power among individuals, which can be influenced by factors such as individual status, occupation, income, and other factors (Atmaja and Maryani 2.
Indicator of consumer purchasing power a Income level b Education level c Level of Needs d Community Habits e Price of goods f Mode Research Methodology This research uses a quantitative approach, which is rooted in positivism, to characterize the population by taking a representative sample.
The quantitative approach involves the use of questionnaires to obtain data, and the analysis used is aimed at testing predetermined hypotheses.
The positivist philosophy views reality, symptoms, and phenomena as categorical, relatively stable, real, observable, and measurable.
The population consists of the entire community of Dharmasraya Regency, and the sample is taken using Slovin's technique, which includes 30 respondents representing the entire population(Adolph 2.
The research method is a correlational survey and correlation analysis.
Data processing is conducted using SmartPLS version 3 software, and the analysis employs path analysis (Path Analysi.
using Partial Least Squares (PLS) data analysis techniques (Saftari and Sinta 2.
Figure 1.
Result and Discussion This research is conducted to measure validity and reliability tests, as well as to assess the direct effects of each research variable, which will be presented in the following tables.
in table 1.
ISSN: 2828-3031
there are several indicators that are not valid due to their loading factors being less than 0.
To ensure all indicators are valid, a second validity test of loading factors should be conducted by removing the indicators that do not meet the validity criteria.
Table 1.
Loading factor validity test CPP (Y) I (X.
MS (X.
X1.
0,803
X1.
0,854
X1.
0,841
X1.
0,786
X1.
0,853
X1.
0,825
X2.
0,809
X2.
0,732
X2.
0,676
X2.
0,643
X2.
0,560
X2.
0,799
0,629
Y10 0,681
Y11 0,495
Y12 0,682
0,498
0,582
0,747
0,677
0,458
0,525
0,742
0,701
Table 1.
Loading factor after cut CPP(Y) I (X.
MS (X.
X1.
0,791
X1.
0,841
X1.
0,837
X1.
0,793
X1.
0,857
X1.
0,838
X2.
0,910
X2.
0,785
X2.
0,910
0,746
0,867
0,897
JOSEAMB Vol.
No.
Tahun 2025
JOSEAMB
ISSN: 2828-3031
Based on Table 1.
1 above, there are several indicators that are not valid due to their loading factors being less than 0.
To ensure all indicators are valid, a second validity test of loading factors should be conducted by removing the indicators that do not meet the validity criteria.
Table 1.
Loading factor after cut CPP (Y) I (X.
MS (X.
X1.
0,791
X1.
0,841
X1.
0,837
X1.
0,793
X1.
0,857
X1.
0,838
X2.
0,910
X2.
0,785
X2.
0,910
0,746
0,867
0,897
Based on Table 1.
2 above, the results of the loading factors can be seen after removing the invalid indicators, allowing for testing in the next stage Table 1.
Average Variance Extracted (AVE) Composite Cronbach's Alpha rho_A (AVE) Reliability CPP (Y) 0,786 0,784 0,877 0,704 I (X.
0,908 0,923 0,928 0,683 MS(X.
0,837 0,847 0,903 0,758
From Table 1.
3 above, it can be seen that the AVE values for each variable are valid, and we can proceed with testing the inner model, specifically the direct effects of variables X1 and X2 Table 2.
Path coefitien Original Sample (O) T Statistics (|O/STDEV|) P Values I(X.
-> CPP (Y) 0,255 1,047 0,296 MS (X.
-> CPP (Y) 0,490 2,172 0,030 Based on the results of the inner model testing in Table 2.
1 above, it can be seen that innovation does not have a significant effect on consumer purchasing power, as the t-statistic does not meet the criterion of being greater than 1.
96 and the p-value is also less than 0.
However, the marketing strategy variable has a significant effect on consumer purchasing power in the existing markets in Dharmasraya Regency.
Discussion