The study is significant for Indonesia’s fast-moving consumer goods (FMCG) sector, where dairy brands compete intensely on price, packaging, and product variants. For Indomilk and similar brands, understanding what truly motivates consumers to buy again can determine long-term market sustainability.
Competitive Dairy Market Demands More Than Product Variety
Indonesia’s dairy market has grown steadily alongside rising health awareness and urban consumption. Indomilk remains one of the most recognizable milk brands in the country. However, brand recognition no longer guarantees customer loyalty.
Modern consumers compare brands based on multiple factors:
- Number of product variants
- Perceived product quality
- Price competitiveness
- Overall value for money
In such a competitive environment, companies must ensure that product assortment is meaningful and pricing feels fair.
The research team from Universitas Dr Soetomo focused on three main variables:
Perceived Product Assortment Quality (PAQ) – whether consumers feel product variants are relevant, organized, and easy to choose.
Price Fairness (PF) – whether consumers believe the product price is reasonable compared to quality and competitors.
Perceived Value (PV) – the overall evaluation of benefits received compared to costs paid.How the Study Was Conducted
The researchers surveyed 109 Indomilk consumers in Surabaya using a structured questionnaire. Respondents were asked to evaluate statements related to product assortment, price fairness, perceived value, and their intention to repurchase.
Most respondents were:
- Aged between 15 and 35 years
- Students or early-career employees
- Regular consumers of Indomilk products
The data were analyzed using Structural Equation Modeling (SEM) with SmartPLS software. This method allowed the researchers to examine both direct and indirect relationships between variables.
Key Findings
The results provide clear insights into consumer behavior:
Product Assortment Quality significantly increases Perceived Value.Consumers appreciate product variants when they are relevant and easy to navigate.
Product Assortment Quality does not directly increase Repurchase Intention.
A wide selection alone does not automatically lead to repeat purchases.
Price Fairness significantly increases both Perceived Value and Repurchase Intention.
Fair pricing strengthens trust and encourages repeat buying.
Perceived Value strongly increases Repurchase Intention.
Consumers are more likely to repurchase when they believe they receive good value for money.
Perceived Value fully mediates the relationship between product assortment quality and repurchase intention.
This means assortment influences repeat purchases only when it enhances perceived value.
Perceived Value partially mediates the effect of price fairness.
Price fairness directly affects repurchase decisions and also works indirectly through perceived value.
The statistical model explains approximately 71 percent of the variation in perceived value and repurchase intention. This indicates that the tested variables play a dominant role in shaping consumer loyalty.
Why Perceived Value Matters Most
The research from Universitas Dr Soetomo highlights a key strategic insight: value perception is the bridge between marketing efforts and consumer loyalty.
Anita Asnawi from Universitas Dr Soetomo explains that consumers do not simply respond to the number of product options available. They respond to how meaningful and beneficial those options feel relative to the price they pay. When consumers perceive that benefits outweigh costs, repurchase intention increases significantly.
This finding shifts the focus from quantity to quality. Expanding product lines without improving perceived value may not improve customer retention.
Implications for Industry and Business Strategy
For Indomilk and other dairy brands, the study offers practical guidance:
- Curate product variants carefully rather than expanding excessively.
- Ensure pricing strategies are transparent and perceived as fair.
- Communicate product benefits clearly to strengthen perceived value.
- Align marketing messages with consumer expectations of value for money.
In Indonesia’s urban markets, young consumers are particularly sensitive to price fairness. Brands that ignore pricing perception risk losing repeat buyers even if their product assortment is strong.
For policymakers and educators, the findings contribute to understanding consumer behavior in emerging markets. The research demonstrates how perceived value functions as a key determinant of loyalty in competitive FMCG industries.
Contribution to Marketing Research
The study from Universitas Dr Soetomo adds to consumer behavior literature by distinguishing between product assortment quantity and product assortment quality. Rather than counting the number of variants, the research measures how consumers perceive the usefulness and structure of those options.
By positioning perceived value as a mediating variable, the research clarifies how marketing strategies translate into actual buying decisions.
Author Profiles
- Veromika Mote – Researcher in consumer behavior and marketing strategy at Universitas Dr Soetomo, Surabaya.
- Mochammad Arfani – Lecturer and researcher specializing in marketing management at Universitas Dr Soetomo.
- Anita Asnawi, S.E., M.M. – Marketing scholar and corresponding author from Universitas Dr Soetomo, with expertise in pricing strategy, consumer behavior, and value-based marketing.
- Priyanto – Academic researcher in strategic marketing and business management at 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, pp. 35–52.
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