The role of Consumer Ethnocentrism (CE) in moderating the influence of the marketing mix on the purchase decisions of MSME packaged ground coffee in Ruteng

Intense competition between local coffee products and external brands remains a major problem, eroding the market share of local Micro, Small, and Medium Enterprises (MSMEs) in Ruteng. This study aims to examine the effect of the marketing mix (4P) on purchase decisions and the role of consumer ethnocentrism as a moderating variable in the packaged ground coffee industry. Using a PLS-SEM analysis of 249 participants in Ruteng City, this causal-associative study identifies the key factors influencing purchase decisions for local MSME coffee. The research findings confirm that product, price, and place provide significant positive contributions. Conversely, promotional efforts were found to have no statistically significant impact on purchase decisions within the context of this study. Additionally, it was demonstrated that consumer ethnocentrism (CE) acts as a predictor moderator for most marketing stimuli and as a quasi-moderator that specifically strengthens the relationship between price and purchase decisions. These findings indicate that a strong sense of local identity creates a synergistic effect, where price is perceived as a quality-value cue that ultimately reinforces the consumer's moral commitment to local brands. This study yields valuable theoretical insights and actionable recommendations for MSME owners and regional policymakers looking to leverage cultural identity and value-based pricing to enhance market engagement in the regional coffee industry.