The article, titled “The Effects of Perceived Product Assortment Quality and Price Fairness on Repurchase Intention: The Mediating Role of Perceived Value among Indomilk Consumers in Surabaya,” examines how consumers evaluate product variety and pricing fairness—and how those perceptions influence their intention to buy again.
Why This Study Matters
Indonesia’s dairy industry continues to grow alongside rising health awareness and urban consumption patterns. Indomilk, produced by PT Indolakto, remains one of the country’s most recognized milk brands. However, brand recognition alone no longer guarantees loyalty.
Consumers today compare brands closely. Product variants, packaging sizes, and nutritional claims are often similar across competitors. Prices are also tightly matched. In this environment, companies must understand what truly motivates consumers to return.
The research team from Universitas Dr Soetomo focused on two key factors:
Perceived Product Assortment Quality (PAQ) — whether consumers feel the product variants are relevant, well-organized, and useful.
Price Fairness (PF) — whether consumers believe the price is reasonable compared to quality and competing brands.
The study then examined how these factors shape Perceived Value (PV) and ultimately Repurchase Intention (RI).
How the Research Was Conducted
The researchers surveyed 109 Indomilk consumers in Surabaya using a structured questionnaire. Respondents rated statements on a five-point scale ranging from strongly disagree to strongly agree.
The sample reflected a broad consumer base:
- Majority female respondents
- Most aged 15–35 years
- Many students and early-career employees
Data were analyzed using Structural Equation Modeling (SEM) with SmartPLS 3 software. The model tested direct and indirect relationships between product assortment quality, price fairness, perceived value, and repurchase intention.
Key Findings
The results provide clear and measurable insights:
Product Assortment Quality significantly increases Perceived Value.
Consumers appreciate product variants that feel relevant and easy to choose from.
Product Assortment Quality does not directly increase Repurchase Intention.A wide or well-organized assortment alone does not guarantee repeat buying.
Price Fairness significantly increases both Perceived Value and Repurchase Intention.
Consumers respond strongly when they feel pricing is fair.
Perceived Value strongly increases Repurchase Intention.
When consumers believe Indomilk offers good overall value, they are more likely to buy again.
Perceived Value fully mediates the effect of product assortment quality.
This means assortment influences repeat purchases only through value perception.
Perceived Value partially mediates price fairness.
Fair pricing affects repurchase both directly and through value evaluation.
Statistically, the model showed strong explanatory power. Approximately 71% of the variation in perceived value and repurchase intention was explained by the tested variables.
What This Means for Indomilk and the Dairy Industry
The findings suggest a shift in strategic focus. Offering more product variants is not enough. Consumers do not automatically reward quantity.
Instead, they ask:
- Does this assortment match my needs?
- Is it easy to choose?
- Is the price justified?
Anita Asnawi of Universitas Dr Soetomo emphasizes that perceived value is the key mechanism translating marketing strategy into consumer loyalty. In highly competitive FMCG markets, brands must consistently justify their price-quality balance.
For dairy producers, this means:
- Curating product variants carefully rather than expanding excessively.
- Maintaining transparent and competitive pricing.
- Communicating nutritional and functional benefits clearly.
- Ensuring pricing aligns with consumer expectations of fairness.
The study reinforces a value-based competition model. In markets where functional differences between brands are minimal, perceived value becomes the decisive factor.
Broader Implications
For policymakers and business leaders, the research provides insights into consumer behavior in urban Indonesia:
- Younger consumers are highly price-sensitive.
- Value perception outweighs brand familiarity.
- Fair pricing builds trust and long-term loyalty.
The study also contributes to academic research by distinguishing between product variety and product assortment quality. Rather than measuring the number of options, it focuses on how meaningful and structured those options feel to consumers.
Author Profiles
Veromika Mote – Researcher in consumer behavior and marketing, Universitas Dr Soetomo.
Mochammad Arfani – Lecturer and researcher in marketing management, Universitas Dr Soetomo.
Anita Asnawi, S.E., M.M. – Corresponding author, Universitas Dr Soetomo; expertise in consumer behavior, pricing strategy, and value-based marketing.
Priyanto – Academic and researcher in strategic marketing and business management, Universitas Dr Soetomo.
All authors are affiliated with Universitas Dr Soetomo, Surabaya, Indonesia.
Source
Mote, V., Arfani, M., Asnawi, A., & Priyanto. (2026). The Effects of Perceived Product Assortment Quality and Price Fairness on Repurchase Intention: The Mediating Role of Perceived Value among Indomilk Consumers in Surabaya. Formosa Journal of Sustainable Research, Vol. 5, No. 1, 35–52.
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