The Influence of Brand Image and Price on Customer Purchasing Power of MSMEs in Palopo City

Abstract

This study aims to analyze the influence of brand image and price on customer purchasing power of MSMEs in Palopo City. MSMEs play a vital role in the local economy, yet face challenges in attracting and retaining consumers. This study employs a quantitative method with data collection through questionnaires distributed to MSME customers in Palopo City with a sample size of 100 using incidental sampling technique. Data analysis technique uses multiple linear regression to test research hypotheses. The results show that brand image and price simultaneously have a significant effect on customer purchasing power of MSMEs in Palopo City. Partially, brand image has a significant effect and has a more dominant influence compared to price on customer purchasing power. Price is also proven to have a significant effect on customer purchasing power. Both variables provide substantial contribution in explaining variations in customer purchasing power. This study provides practical implications for MSME actors to pay attention to building a strong brand image and competitive pricing in order to increase customer purchasing power and competitiveness in the local market.