Driving Consumer Purchase Decisions Through Product Innovation: A Study on Fashion MSMEs in Bandung City (Indonesia)

The fashion industry in Indonesia, particularly among MSMEs in Bandung city, has experienced significant transformations due to evolving consumer demands. Given Bandung's prominence as a fashion hub, understanding these dynamics is crucial for MSMEs to remain competitive. This study investigates the impact of product innovation on consumer purchasing decisions within the fashion sector. Using a quantitative approach, this study collected data through a five-level Likert scale questionnaire, yielding 385 valid responses. The methodology included the validity, reliability, and classic assumption tests, the data were analyzed using descriptive analysis and simple linear regression. To conclude the data analysis, the hypothesis was tested with a t-test and coefficient of determination. Results of the analysis revealed that product innovation significantly influences consumer purchasing decisions, explaining 34.9% of the variation. The remaining 65.1% is attributed to other unexplored variables. These findings highlight the necessity for continuous product innovation among fashion MSMEs to enhance market position and satisfy consumer needs. This study recommends further research to identify additional factors impacting consumer decisions, providing a more comprehensive understanding of consumer behavior in emerging markets.