THE MEDIATION ROLE OF BRAND IMAGE ON THE EFFECT OF SALES PROMOTION ON SMALL AND MEDIUM ENTERPRISE (SME) PRODUCT PURCHASE DECISIONS

ABSTRACT

Micro, Small, and Medium Enterprises are the government's priority in developing the community's economy in Indonesia. This study examines how the brand image functions as a mediator of the impact of sales promotion on consumer choices to buy SME goods. This type of research uses a cross-sectional survey methodology. This type of research is a survey with a cross-sectional approach. The population of the research of SME consumers in Palembang City. Simple random sampling was used to select 110 respondents as the sample. The research instrument used a closed questionnaire. Data analysis used Partial Least Square Structural Equation Modeling (SEM-PLS). Research findings indicate that Brand image has a positive and significant effect on Product Purchase Decisions, and Sales Promotion has a positive and significant effect on brand image. There is no positive and significant influence of Sales Promotion on Product Purchase Decisions. The brand image mediates the influence of sales promotion and consumer decisions to buy SME goods in Palembang.