The Influence of Brand Awareness and Innovation on Purchasing Decisions in the Furniture Craft MSMEs of Palembang
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Abstract
This study aims to examine how brand awareness and innovation influence consumer purchasing decisions in the context of the furniture craft industry. The research was conducted at UMKM Meubel Kreatif Palembang, a local enterprise engaged in the design and production of handmade furniture such as tables, chairs, and cabinets. This study adopts a quantitative associative causal method with purposive sampling, collecting data from 142 respondents who are repeat customers of the brand. Data were analyzed using SmartPLS 3.0 software. The findings indicate that brand awareness has a significant and direct influence on consumer purchasing decisions. Innovation in product design and materials also plays a critical role in strengthening consumer interest and loyalty. However, the study reveals that brand awareness does not significantly moderate the effects of promotional efforts and product quality. These results suggest that enhancing brand recognition and investing in continuous product innovation can be effective strategies for increasing sales and long-term competitiveness in the local furniture sector.
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