The Effectiveness of Product Innovation and Advertising Appeal to Increase the Competitive Advantage of MPV Cars

Abstract

The transportation sector in Indonesia has experienced significant growth, particularly in the development of cars. Among the various types of cars, MPV cars have shown remarkable progress. This research aims to enhance the competitive advantage of MPV car companies through product innovation and effective advertising strategies. The study focuses on MPV car users in Cirebon City as the target population. To ensure a representative sample, purposive random sampling technique was employed, resulting in a sample size of 207 participants, determined using Hair's formula. The data analysis method utilized in this study is Structural Equation Modeling-Partial Least Square (SEM-PLS). The findings reveal that advertising appeal has a greater influence on the competitive advantage variable compared to product innovation. This can be attributed to the fact that consumers are initially more interested in learning about the advantages highlighted in advertisements before considering the specific product innovations offered by MPV cars.