Product Innovation of

Minangkabau Traditional
Woven: An Empirical
Study
 “
Research by:

Zakia Mustika
Background Companies are faced to the
increasing of competition level
 “
“The bigger world economy,
the presence of small
companies will become
stronger.”
Naisbitt (1994)
Some SMEs
operating in
Creative  Intensive
Economy
information
 Idea, and
 creativity
Indonesia has a myriad of diverse culture
that is able to attract the attention of the
world

Potential
culture
Economic
potential
West Sumatra,
folk craft
Featured
product
 2 famous Tenun
Minangkabau Kubang
traditional wovens
in. 50 Kota
Tenun
Halaban
 b o u t
o w a u
H ka b a
i n a n g
M n a l
d i t i o
Tra ?
e n
wov
 Examine the linkage between
product innovation, brand image,
The Aim of perceived quality and purchase
Study intention.

DEVELOP A MODEL
OF PURCHASE
INTENTION
 The development of new products, making
changes in current product design or using
Product new techniques in the current production
n
Innovatio methods

Literature
Perceived The consumer’s opinion on overall
Quality excellence or superiority of the product

It refers to a set of beliefs held by consumer

Bra nd about a particular brand, that is formed of
Image information and experiences with the brand

Means a consumer has a particular need to a

Purchase product and then prefers to buy a product to
Intention
meet the need, or even attitude towards a
product and product awareness
 Product Innovation has a positive effect on Brand
Image
Reseach
Hypothesis Perceived Quality has a positive effect on Brand
Image

Perceived Quality berpengaruh positif terhadap

Purchase Intention

Brand Image has a positive effect on Purchase

Intention
 Research Framework

Product
Innovation
(X1) H1

H3 Purchase
Brand Image
Intention
(Y1)
(Y2)
H2

Perceived
Quality H4
(X2)
Ex al
pla n
res nato t io
ea sec
rch ry o ss
C r

Research Methodology
Ca
le s us
p ali
sam ty
150
Data
Questionnaires
collection
Sampling Non-probability Sampling
Technique (Accidental Sampling)

Devotee & consumer of

Minangkabau traditional woven in
Unit analysis
Payakumbuh City & Lima Puluh Kota
Regency
Data Analysis
Structural Equation (SEM)
Technique
RESULT OF STUDY
 Characteristics of Respondent

Unmarri
ed
Male 27%
27%

Married
Female
73%
73%

Male Married Unmarried

Female
 Characteristics of Respondent

The age of Last education

6% Primary Sch
6% ool
19% 5% 7% Secondary
19% School
< 20 years old
High School
20 – 29 years old
27% Diploma
30 – 39 years old 46%
32% 24% S1
40 – 49 years old

≥ 50 years old 9% S2
 Jobs

9% 0% 13% Student

Housewife
Characteristics 18% 13%
Self employed
of Respondent
19% Civil servant
28%
An employee of a private
Income per month
Other
8%
< Rp. 500.000
22%
11% Rp. 500.000 – Rp. 1.000.000

13% Rp. 1.000.000 – Rp. 2.000.000

Rp. 2.000.000 – Rp. 3.000.000
29% Rp. 3.000.000 – Rp. 4.000.000
17%
> Rp. 4.000.000
Data Multi-
dimensional
Analysis construct
Convergent
validity
Structural Validity test
Equation
Discriminant
Model First Order
Reliability test validity
Reflective
(SEM)

Second
Order
Validity test
Formative
Instruments Testing

The validity of the

indicators is determined
by the value of the
outer loading > 0.5, and
AVE > 0.5.

  AVE
Market Breakthrough 0.732644
New Product 0.643293
Perceived Quality 0.753972
Purchase Intention 0.600629
Technological Innovation 0.527689
Service Innovation 0.814671
 Market New Perceived Purchase Technological Service
Breakthrough Product Quality Intention Innovation Innovation

Market
Breakthrough
0.855829*

New Product 0.22531 0.802168*

Perceived Quality 0.521184 0.267268 0.868312*

Purchase
Intention
0.564515 0.295732 0.611394 0.775001*

Technological
Innovation
0.485778 0.368614 0.607015 0.638274 0.782389*

Service Innovation 0.230991 0.42217 0.403906 0.397545 0.352849 0.90262*

*. Root of AVE (√AVE)

Discriminant validity The value meets when the value of the correlation
Latent Variable Correlation score indicator to its variable greater than the score
indicator to other variables.
 Composite
 
Reliability

Market Breakthrough 0.845531 Reliability

New Product 0.87802 Test
Perceived Quality 0.924458
Composite Reliability > 0,70
Purchase Intention 0.880639
In the measurement model,
Technological Innovation 0.861054 all constructs had a
composite reliability over
Service Innovation 0.946156
the cut-off of 0.70
Instrument
Testing of
Formative
Multicollinearity Test
Model
Collinearity Statistics
Multicollinearity Model
Test Tolerance VIF
Product Innovation .465 2.149

1 Brand Image
Pcv. Quality
.476
.615
2.102
1.627
a. Dependent Variable: Purchase Intention

VIF < 10 dan tolerance > 0,1

Therefore, it can be inferred that multicollinearity is not
occurred
Based on the results of data
processing above, it can be
noted that all variables have
the value of tolerance greater
than 0.1 and VIF less than 10.
Therefore, it can be inferred
that multicollinearity is not
occurred
 T Statistics
 
(|O/STERR|)
BI1 -> Brand Image 10.831434
Explain that
BI2 -> Brand Image 2.543241 estimation value for
Instruments BI3 -> Brand Image 5.145162 the measurement
Testing of BI4 -> Brand Image 7.807436
model should be
Formative BI5 -> Brand Image
IM1 -> Product Innovation
8.260968
6.013146
significance
Model IM2 -> Product Innovation 5.014218
The level of
IP1 -> Product Innovation 1.851419
significance: 0,05 (α =
Significance of IP2 -> Product Innovation 2.220603
5%)
weight IP3 -> Product Innovation 0.498967
IP4 -> Product Innovation 0.162801
T-table : 1,64

2
IS1 -> Product Innovation 0.597026
IS2 -> Product Innovation 1.563315
IS3 -> Product Innovation 3.998144
T Statistics > T-table
IS4 -> Product Innovation 4.458614
IT1 -> Product Innovation 10.38077
IP3, IP4, IS, IS2, IT4,
IT2 -> Product Innovation 5.973475 and IT5 have weak
IT3 -> Product Innovation 4.457151 significance in
IT4 -> Product Innovation 1.176474 variable
IT5 -> Product Innovation 1.378387
measurements.
IT6 -> Product Innovation 11.116616
 R Square

Assessment   R Square
of Structural Brand Image 0.633641
Model Market Breakthrough  
New Product  
Perceived Quality  
Product Innovation 0.99255
Purchase Intention 0.501748
Technological Innovation  
Service Innovation  
 Hypothesis Testing
Original T Statistics
Keterangan
Sample (O) (|O/STERR|)

Brand Image -> Purchase Intention 0.440236 12.217536 Significant

Not
Perceived Quality -> Brand Image 0.067602 1.413344
Significant

Perceived Quality -> Purchase Intention 0.354758 9.122329 Significant

Product Innovation -> Brand Image 0.747926 18.053807 Significant

T Statistics > T-table

The level of significance : 0,05 (α = 5%)
T-table : 1,64
 Product innovation
has a critical role in
driving the brand Perceived quality
success, it has no
Conclusion illustrates certain significant effect
features of a on brand image.
product that affect
brand image

In purchase
behavior,
consumers are Brand image
likely to have significantly
interest to positive influence
products with a purchase intention
high perceived
quality
 The findings could be
developed become a
marketing strategy to
enhance brand image and
as a trigger for consumer
to purchase
Implication Business practitioners
should be aware that new
products, innovative
features, attractive design,
superior quality can affect
market demand for the
product.
Marketing managers
should strive to create a
positive consumer’s
perception against
products that are
offered.
Thank You!