Green Innovation and Brand Image Influences on Customer Satisfaction in Palu City MSMEs’ Transformation
Keywords:
Green Innovation; Brand Image; Costumer Satisfaction; MSMEs; Transformation; ConsumersAbstract
This study aims to analyze the effect of green innovation and brand image on the satisfaction of MSME customers in Palu City. Changes in consumer preferences, which increasingly focus on sustainability practices and brand reputation, make these two factors important in shaping the consumption experience. This study was conducted in Palu City, involving 95 respondents who had purchased local MSME products. Data were collected using a Likert scale questionnaire and analyzed using descriptive statistics and multiple linear regression to test the partial and simultaneous effects between variables. The results show that green innovation and brand image simultaneously have a significant effect on customer satisfaction (F = 64.183; p < 0.001). Partially, green innovation has a positive and significant effect on customer satisfaction (? = 0.206; p = 0.033), although its effect is relatively lower than that of brand image. Brand image proved to be the most dominant variable in influencing customer satisfaction (? = 0.603; p < 0.001), indicating that consumers place more emphasis on aspects of reputation, trust, and positive perceptions of the brand. This research model is able to explain 58.3% of the variation in customer satisfaction among MSMEs in Palu City. The limitations of this study lie in the relatively small sample size and the dominance of respondents from the younger age group, so the results do not fully represent all segments of MSME consumers. This research model is able to explain 58.3% of the variation in customer satisfaction among MSMEs in Palu City. The limitations of this study lie in the relatively small sample size and the dominance of respondents from the younger age group, so the results do not fully represent all segments of MSME consumers. Therefore, further research is recommended to expand the number and characteristics of respondents and add other variables, such as service quality or digital experience, to gain a more comprehensive understanding of the factors that influence MSME customer satisfaction.
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