The Impact of Handicraft Product Quality and Price on Customer Purchasing Decisions (A Case Study in Atauro Island, Timor-Leste)

This study aims to analyze the impact of handicraft product quality and price on purchase decisions in a case study on Atauro Island, Timor-Leste. This research was conducted in Beloi District, Atauro, with data collected through a questionnaire survey to 384 participants. Analysis using SmartPLS 4.0 shows that product quality and price significantly influence purchase decisions. The statistical test results showed that product quality positively affected purchase decisions considerably, with a t-statistic value of 8.217 ( p< 0.05). At the same time, price also showed a significant positive effect with a t-statistic 6.087 ( p < 0.05). Hypothesis testing shows that quality and price influence purchase decisions with a coefficient of determination R-square of 0.575, indicating that product quality and price can explain 57% of the variability in purchase decisions. Combining these two variables influences repurchase intention and increases customer loyalty to handcrafted products in Atauro. Therefore, it is recommended that producers continue to improve the quality of the product, especially in terms of aesthetics and durability, while setting the price competitive in line with consumer expectations.