PENGARUH HARGA DAN PENDAPATAN TERHADAP PERMINTAAN PRODUK UMKM LOKAL

Abstract

This study aims to analyze the influence of price and income on the demand for local MSME products. Micro, Small, and Medium Enterprises (MSMEs) play a crucial role in improving community economic conditions; however, the demand for their products often fluctuates due to changes in price levels and consumer purchasing power. This research employs a quantitative method with a multiple linear regression approach. Data were collected through questionnaires distributed to consumers of local MSME products within the study area. The analysis results indicate that the price variable has a significant negative effect on the demand for local MSME products, while income has a significant positive effect. This implies that higher prices tend to decrease demand, whereas higher consumer income increases demand for local MSME products. These findings highlight the importance of implementing appropriate pricing strategies aligned with consumers’ purchasing power to help MSMEs maintain competitiveness and enhance their sales performance.