The Influence of Product Innovation and Price on Purchase Decisions on Elegant Guitar with Customer Satisfaction as an Intervening Variable

Abstract

Abstract: This study aims to analyze the influence of product innovation and price on purchase decisions, with customer satisfaction as a mediating variable among consumers of Toko Elegant Gitar. The research employs a quantitative approach using primary data collected through questionnaires, utilizing a Likert scale. The sample consists of 85 respondents who are consumers of Toko Elegant Gitar. Data processing was conducted using SmartPLS version 4. The results indicate that price has a positive and significant direct effect on both customer satisfaction and purchase decision, while product innovation has a negative and insignificant effect on both customer satisfaction and purchase decision. Customer satisfaction has a positive and significant effect on purchase decision. Indirectly, price has a positive effect on purchase decision through customer satisfaction. However, product innovation does not have a significant effect on purchase decision, either directly or indirectly through customer satisfaction.