MSME Dynamics: The Effect of Brand Image, Product, and Service Quality on Purchasing Decisions at a Cake Shop

Abstract

Monthly purchases at Happiness Cake Shop in Kota Gajah fluctuate because of shifts in consumer
preference toward other brands, inconsistent product quality, and suboptimal service quality. This
study examines the effect of brand image, product, and service quality on purchasing decisions at the
shop. A quantitative explanatory survey design was applied, with a sample of 100 customers selected
through accidental sampling, and the data were analysed using multiple linear regression in SPSS,
preceded by classical assumption tests. The results show that brand image, product, and service
quality each have a positive and significant partial effect on purchasing decisions, and that the three
variables jointly exert a significant simultaneous effect, explaining 60.2 percent of the variance in
purchasing decisions. Service quality recorded the largest standardised effect and is therefore the most
dominant determinant, with physical evidence as its most dominant dimension, while brand quality
and product durability were the most dominant dimensions of brand image and product, respectively.
These findings indicate that, although brand image and product quality matter, excellent and
responsive service is decisive in shaping purchasing decisions. The study contributes to marketing-
mix research for small food enterprises and recommends that the shop prioritise service quality while
sustaining brand consistency and product quality