Article Details
Vol. 1 No. 1 (2026): Juni
Teacher Support for Independent Learning Through Resources, Literacy, Task Design, Monitoring, and Assessment
Purpose: This study aims to examine the influence of location and promotion on purchasing decisions through price as an intervening variable at the Surabaya UMKM Center, Kriya Gallery (SKG), Siola, Surabaya.
Methodology: A quantitative approach with a causality design was employed. Data were collected from consumers of SKG Siola using purposive sampling and a structured questionnaire. Analysis was conducted using Partial Least Squares (PLS) via SmartPLS and Structural Equation Modelling (SEM) via SPSS 24. Validity was assessed using the product-moment correlation, and reliability was measured using Cronbach's alpha.
Results: Location and promotion each exert significant positive effects on price perception and on purchasing decisions. Price partially mediates the relationship between location and purchasing decisions, as well as between promotion and purchasing decisions. Goodness-of-fit indices confirmed model adequacy (RMSEA = 0.033; CFI = 0.907).
Conclusions: Strategic location and effective promotional activities are key drivers of purchase decisions in the MSME retail context, and pricing perception acts as a meaningful intervening mechanism.
Limitations: The study is confined to a single MSME center in Surabaya and relies on cross-sectional data, limiting temporal and geographic generalizability.
Contributions: This research fills a gap in the MSME marketing literature by empirically establishing price as a partial mediator between location, promotion, and purchase decisions within a unique craft-gallery retail setting.
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