UNDERSTANDING CONSUMER PURCHASE DECISIONS IN THE FAST-FOOD INDUSTRY: THE ROLES OF DIGITAL PROMOTION, PRODUCT INNOVATION, AND LOCATION

Abstract

Competition in the Indonesian fast-food sector has intensified to the point where national brand recognition alone no longer reliably predicts branch-level sales performance. This study examines how digital promotion, product innovation, and location jointly shape consumer purchase decisions at KFC SPBU Selindung Pangkalpinang. Using a quantitative design, data were collected from 100 consumers via structured questionnaire and analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM) with SmartPLS 4. Measurement model evaluation confirmed satisfactory convergent validity (all outer loadings > 0.70; AVE > 0.50), discriminant validity (Fornell-Larcker criterion and HTMT < 0.90), and reliability (Cronbach's Alpha and Composite Reliability > 0.70). All three predictors positively and significantly influenced purchase decisions. Product innovation emerged as the strongest predictor (β = 0.361; t = 4.156; p < 0.001), followed by location (β = 0.326; t = 4.569; p < 0.001) and digital promotion (β = 0.247; t = 2.657; p = 0.008). The model explained 68.0% of variance in purchase decisions (R² = 0.680). Effect-size analysis confirmed that product innovation contributes the greatest practical impact (f² = 0.197), with location at medium effect (f² = 0.150) and digital promotion at small-to-medium effect (f² = 0.089). These findings contribute branch-level evidence from the Indonesian fast-food market and suggest that product value and physical accessibility drive purchasing decisions more strongly than promotional communication alone.