THE ROLE OF PRODUCT DIVERSIFICATION, TECHNOLOGY, AND DIGITAL LITERACY IN INCREASING THE INCOME OF LAMONGAN SOTO TYPICAL FOOD UMKM WITH CONSUMER SATISFACTION AS A MEDIATION VARIABLE
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Abstract
MSMEs play an important role in the Indonesian economy, especially in the regional specialty food sector which not only supports the local economy but also strengthens cultural identity. In Lamongan Regency, one of the famous specialty products is soto Lamongan. MSMEs that manage this soto business play an important role in maintaining the authenticity and extinction of specialty culinary delights while making a significant economic contribution. This study aims to analyze the effect of product diversification, technology, and digital literacy in increasing MSMEs income. The model used in this study is Partial Least Squares Structural Equation Modeling (PLS-SEM). This study uses the object of MSMEs of Soto Lamongan specialty food. The research population is all visitors to MSMEs of Soto Lamongan specialty food. The sample will be selected randomly with the specified inclusion and exclusion criteria to ensure sample representativeness. Data will be collected through a survey using a structured questionnaire. This study resulted in: 1) Product diversification has a significant positive effect in increasing the income of Soto Lamongan specialty food MSMEs. 2) Product diversification has a significant positive effect on consumer satisfaction of Soto Lamongan specialty food MSMEs. 3) Technology has a significant positive effect in increasing the income of Soto Lamongan specialty food MSMEs. 4) Technology has a significant positive effect on consumer satisfaction of Soto Lamongan specialty food MSMEs. 5) Digital literacy has a significant positive effect in increasing the income of Soto Lamongan specialty food MSMEs. 6) Digital literacy has a significant positive effect on consumer satisfaction of Soto Lamongan specialty food MSMEs. 7) Consumer satisfaction has a significant positive effect in increasing the income of Soto Lamongan specialty food MSMEs.
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