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Volume 5, Issue 6, June – 2020 International Journal of Innovative Science and Research Technology

ISSN No:-2456-2165

Influence of Consumer Decision Making,


Supplier, and Competitive Advantage over
Channel Distribution on Creative
Economy with Pandemic COVID-19
Christiana Fransiska Sembiring Setyo Riyanto
Master of Management Student Mercu Buana University Associate Professor, Mercu Buana University
Jakarta, Indonesia Jakarta, Indonesia

Abstract:- This research shows that the influence of increases sharply, for example: wearing masks, washing
consumer decision-making, suppliers, and competitive hands many times a day, consuming vitamins. Not only
advantage over channel distribution in the creative news and hoax, excessive social media is pushing for
economy affected by Pandemic COVID-19. The recentness, so they also start to set masks, hand sanitizer,
research aims to uncover the influence of these three wet tissue, flu medication, or a variety of vitamins to boost
factors on channel distribution to the affected creative the immunity of the body.
economy. The study was conducted against 88
respondents in a simple random sampling. Some Studies in affected countries have shown, consumers
regression results show that decision making, the most are so easily affected by the news developments in the
influential factor in channel distribution, has the fewest spread of viruses and hoax news on social media which
influence compared to suppliers and competitive then translates into spontaneous purchase decision making.
advantages for creative economic entrepreneurs in No wonder that some time ago the society of panic buying
Indonesia. to hunt masks, hand sanitizer, or red ginger so it is rare in
the market and if there is but the price skyrocketed. The
Keywords:- Decision making; Competitive advantage; psychology of consumer spending is unstable, volatile, and
Channel distribution; COVID-19; Supplier. impulsive.

I. INTRODUCTION FASE2: The government announces the infected


number of the exponential surge, and some infected
Pandemic COVID-19 has been so extreme changing patients begin to pass away. In this phase, the fear of
consumer behaviour. The change can be temporary, but it crawling up and shadow of Wuhan city or Lombardy is
can also change to keep forming new normal. By reducing empty because no more citizens are brave out of the house
travelling to restrict contact with others, for example, already shaded in mind. So, the housewives start to panic
consumers would be inclined to shop online, much to order buying not only the anti-septic, cleanser, and flu-drugs, but
meals through online delivery, or more movie watching at other essential needs such as instant noodles, snacks,
home (that's why Netflix's stocks jumped during the sauces, sardines, BOTTLED water, biscuits, and rice. They
COVID-19 crisis). Learning from the SARS outbreak in begin to consider the worst possibility of isolating and
China in 2004, the outbreak of the plague accelerates the quarantining themselves at home. This "blocking" action
behaviour of people online shopping. Intelligently, this will be firmer as the government's announcement of the
change is utilized by JD.com and is now the largest online number of infected and deceased people and the more a
retailer in China. How the channel distribution faces film star, athlete, or state official has contracted.
changes in consumer behaviour as it intensified the
influence of this deadly plague. To chart, the authors tried The community started restricting travelling outdoors
to divide the spread of COVID-19 into three phases, so that malls, performances, sports games, nightclubs,
following their impact on changes in consumer behaviour, cinemas, foodcourt, airports, terminals and TRAIN stations,
suppliers and competitive advantage. and crowded places began to be deserted because of
avoided frightened communities. Consumers start reducing
FASE1: When the World Health Organization (WHO) shopping in markets and supermarkets, coffee at the coffee
sets the COVID-19 as a pandemic that spreads throughout shop or eat at the mall. Then online shopping and food
the world and starts to have our identified community delivery service is a solution to get the daily necessities
infected with this deadly virus. In this phase, consumer (grocery) they need.
fears are getting real and start thinking that every moment
they can be infected by this deadly virus. If in the previous FASE3: When the number of dead victims jumped
phase they assumed "still far " Then in this phase they sharply, and the government began to panic out a variety of
started to fret because "the threat is in front of the eyes". In handling policies such as lockdown, Travel ban, closure of
this phase, the behaviour of a clean and healthy life crowded places, quarantine/isolation, until the holiday

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Volume 5, Issue 6, June – 2020 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
office/school. In this phase, consumers are at the top of the material needs of the community in its region is very
fear, and environmental conditions of the community are so important. The application of social restrictions is still to
gripping. People have been really afraid out of the house to continue. But attention to the application of social
shop and decide to stay home for days (self-quarantined). restrictions should not reduce the awareness or urgency of
securing the stock of the basic needs of the community in
The deficit of staple materials in some areas reveals each province. In the midst of shopping for food and health
the classic problem of ineffective distribution governance. products, the shopping of secondary products such as
Therefore, all ministries and related institutions should motor/car, Home Appliance (durable goods), electronic
promptly improve the distribution of governance, so that goods, entertainment, until the education face-to-face
the basic needs material deficit does not add new issues directly stops.
during the COVID-19 pandemic period.
The creative economy is a concept in the new
The effectiveness of the distribution of basic needs economic era that intensifies information and creativity by
materials in the middle of the COVID-19 pandemic period relying on ideas and knowledge from human resources as a
is very clear urgency. COVID-19 has been a plague in all major production factor. Where this creative economy can
provinces. Social restrictions with all consequences cause provide solutions in creating a competitive advantage in the
the public to be uncomfortable. Do not let the deficit provision of daily necessities, with that background, the
material need to add problems. The effectiveness of the results of the study influence three variables affecting
material distribution of basic needs should be improved channel distribution in the pandemic time COVID-19.
immediately so that no more areas should be subjected to
the shortage of staple material needs. Anyone understands II. LITERATURE REVIEW
that when a basic needs deficit reaches an extreme scale,
the issue will widen. A. Decision
The sense of purchasing decision, according to Kotler
Online shopping for food products and groceries & Amstrong (2001), is a stage in the decision-making
initial spiky sharply so will experience atom goods. With process of buyers where consumers actually buy. Decision
the scarp of goods, the price surge will occur, but the making is an individual activity that is directly involved in
consumer is no longer sensitive to the price, in the midst of obtaining and using the goods offered. Another definition
gripping fear, whatever price will be bought. The of a buying decision is a buyer's decision about which
discomfort that is now felt together will also be prolonged. brand was purchased. Consumers can form the intention to
In order not to escalate new problems along with the buy the most liked brand. A purchase decision is a
COVID-19 pandemic, the issue of staple matter deficit decision-making process of a purchase that includes
should not occur. determining what to buy or not to make a purchase (Kotler
and Amstrong, 2008). According to Peter and Olson
In the past, the inter-island connectivity factor and (2000), Purchasing decisions are the process of combining
transport factor often disrupts the distribution of basic knowledge to evaluate two or more alternative behaviours
material needs throughout the region. Another factor that is and choose one of them. The purchase decision, according
also worth researched is the possibility of different inter- to Schiffman and Kanuk (2000), is the selection of an
institutional data or K/L about the needs and stocks. The action from two or more alternative options.
ego sectoral problem is not uncommon as a factor that
weakens coordination between institutions. Then, if the Setiadi (2003), said the decision making taken by
theme of provincial or territorial management is necessary, consumers could be referred to as problem-solving. In the
the attention and willingness to proactively become the decision-making process, consumers have the goals or
head of the area become very important. High low demand behaviours they want to do to achieve that goal. This can
and local staple stock needs should be the attention of help to solve the problem. Further described problem-
regional heads from day to day to avoid the deficit of solving is a continuous flow of reciprocal among
community material needs. In addition, since the COVID- environmental factors, cognitive and affective processes
19 pandemic raises anxiety on food availability, to prevent and behavioural actions. In the first stage is an
panic purchases, the lack of stock of any material understanding of problems. Further evaluation occurs on
requirement should not reach an extreme scale. Therefore, existing alternatives, and the most appropriate action is
the implementation of social restrictions until PSBB (large- chosen. In the later stages, the purchase is expressed in an
scale social restrictions) should not interfere with or action that is ultimately selected, or designated item will be
damage the distribution chain of basic needs. used, and the consumer will re-evaluate the decision he has
taken.
As a result, available commodities are not distributed
to areas of need or deficit areas. Another problem that Pranoto (2008), also describes the behaviour of
needs to be wary of is the possibility of disruption of the decision-making by consumers to make purchases of
distribution chain from the surplus area to the deficit area products or services beginning with the awareness of the
due to the implementation of social restrictions. This fulfilment of needs or wishes and aware of the next
should be promptly addressed by the Ministers and regional problem, the consumer will take several stages that
chiefs to prevent public panic. The safety of the basic eventually arrive at the post-purchase evaluation stage.

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Volume 5, Issue 6, June – 2020 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
Processes in buying decision according to the most Whereas broadly, the objectives of the supplier's
common understanding, a decision is a selection of two or assessment are: to know the performance of suppliers, by
more alternative options. Here are some expert opinions on conducting continuous research, assisting SMEs to
the decision-making process of buying consumers. determine with which suppliers will be doing the
cooperation for the future and the best at present, and
According to Kotler (2009), There are five purchasing providing feedback for subsequent performance
decision processes that are passed by each individual in improvements.
making a purchase, namely:
 Introduction of needs of the initial stage of buying C. Competitive Advantage
decision, consumers recognize the problem of necessity Competitive advantage is the essence of performance
of the product to be purchased. Consumers feel 13 in market competition because the competition is the core
There is a difference between real state and desired of the company's success or failure (Lasalewo, 2016).
circumstances. The need is highly triggered by the Competitive advantage is a set of factors that differentiate a
internal (need) and external. company from its competitors. The key to business success
 The information search phase of the purchase decision is the development of a unique competitive advantage,
that can be the consumer to seek more information. which results in a difficult thing that competitors and value
Consumers may only increase attention or maybe customers (Adiputra, 2017) have to emulate. According to
actively seeking information. Respatya (2001), companies that produce products and
 Alternative evaluation The process by which consumers services should pay attention to the concept of competitive
use the information obtained to evaluate an existing advantage so that the company can survive, which will
alternative, the process of selecting the product to be eventually earn the profit.
purchased.
 Consumer purchase decisions plan to purchase a D. Channel distribution
product and then purchase a specific product for the According to Buchari Alma (2005), distribution is a
fulfilment of the needs. group of institutions that connect with each other to
 Post-purchase conduct follow-up after buying based on conduct the distribution of goods or services so that they
the satisfaction or whether the consumer is satisfied are available for use by consumers (buyers). Furthermore,
with the product it uses. according to Daniel's distribution is an activity of an
organization that aims to facilitate the distribution of goods
B. Supplier or services from producers to consumers (Dilihatya, 2014).
In general, the sense of supply chain is a description According to Swastha (2007), channel distribution for
that describes how an organization (suppliers, goods is a distribution channel used by manufacturers to
manufactures, distributors, retailers and customers) is distribute the goods to consumers or industrial users.
interconnected. Supply chains have dynamic properties but Broadly, the distribution can be interpreted as marketing
involve three constant streams, i.e. information flow, activities that try to facilitate and facilitate the delivery of
products and money. The main purpose of each supply goods and services from the manufacturer to the consumer,
chain is to meet the needs of consumers and generate so that the use is as needed (Tjiptono, 2008).
profits (Chopra and Meindl, 2007). The integrated supply
chain will increase the overall value generated by the III. METHODOLOGY OF RESEARCH
supply chain.
Research is done using the method of Deskriftif with a
Supplier is one of the business partners that play a quantitive approach. This assessment is done to determine
very important role in ensuring the availability of supply the influence and relationship between variables. This
goods and quality required by a business or SME. A research was conducted in the year 2020. By emphasizing a
healthy and efficient business will not be able to compete quantitative approach, the study was to explain the partial
with its competitors when its suppliers are not able to and simultaneous influence between the variable influence
produce quality raw materials or are not able to fulfil the of consumer decision-making (X1), Supplier (X2), and
delivery in a timely manner. In general, most of the SMEs competitive advantage (X3) against channel distribution
assess the supplier only focuses on the price of goods, the (Y). This research uses primary data obtained from
quality of goods, and the timeliness of delivery provided questionnaires distributed to 88 respondents. This study
without seeing any influence on the total cost. Often uses multiple linear regression analyses. This analysis is
supplier assessments require various other criteria that the used to measure the strength of two or more variables and
company considers important. also indicate the direction of the relationship between
dependent variables and independent variables. Data
A good supplier is a supplier who (Bailey et al., collected, then processed and also analyzed using SPSS
1994): Deliver goods on time, set quality consistently, version 25.0. Testing was conducted to test whether the
provide the best price, have a good background and stable, data in this study were distributed normally and had no
provide good after-sales service, provide good supply symptoms of multicollinearity, as well as the symptoms of
services, do what will be done, provide technical consulting heteroskedasticity. Multiple linear regression analysis
services, always inform the progress of the process to methods are assessed from the coefficient of determination,
consumers. T-Test, and F-Test. The type of research used in this study

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Volume 5, Issue 6, June – 2020 International Journal of Innovative Science and Research Technology
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is associative research aimed at seeing the relationship or E. Multiple regression analysis
influence between variables in research conducted by The regression equation in this study is to find out
researchers. how large the independent variable influences are
consumer decision-making (X1), Supplier (X2), and
A. Test normality competitive advantage (X3) against channel distribution
Santoso (2002:322) argues to determine the normal (Y).
presence of data independent variables can be performed by Common forms of this equation include:
looking at the normal plot graph (Probability Plots) in the
SPSS program comparing the cumulative distribution of the Y = α + ß1.X1 + ß2.X2 + ß3.X3 + e
normal distribution.
Description:
B. Multicholinerity Test Y = Channel distribution α = Constants
Sugiyono and Susanto (2015:332) This test aims to 1. ß1, ß2, ß3 = regression coefficient
determine the multicollinearity between variables by 2. X1 = Decision Making
looking at the correlation value between the free variables. 3. X2 = Supplier
The reliability test is used to demonstrate the level of 4. X3 = Competitive Advantage
reliability of the internal consistency by measuring the e = Default Error
coefficient of Cronbach's Alpha where variables can be
considered reliable when they have an Alpha value greater
than 0.60 (Riyanto, 2019).

C. Heteroskedastisity Test
Sugiyono and Susanto (2015:336) The
Heteroskedastisity test aims to determine which bully
variables in the regression equation have the same variance
or not. If it has the same variance, it means there is no
heteroskedasticity. Whereas if it has a variance that is not
the same, then there is heteroskedasticity.
Fig 1:- Framework Model
D. Hypothesis Testing
The hypothesis test used in the study was the F. Hypothesis
hypothesis test using the simultaneous test of F, and H1: Simultaneous decision making of channel distribution
hypothesis testing using a partial test of T. Simultaneous H2: allegedly simultaneously suppliers against channel
test F can be known by using the processed results of SPSS distribution
data, in the ANOVA table by looking at the comparison H3: Allegedly simultaneously competitive advantage over
between F count and F table and also the significant value channel distribution
(SIG) specified is 5% (α ≤ 0.05), whether collectively H4: Suspected simultaneous decision-making, supplier,
dependent variables affect the state of independent competitive advantage over channel distribution
variables. While the partial test of T can be known using
the processed results of SPSS data, in the table Coefficients IV. RESULT AND DISCUSSION
by comparing the value of table T and T count and also
significant value (SIG) specified is 5% (α ≤ 0.05). The validity and reliability of any questions asked to
respondents. The Output states that all variables in the
study have a valid, which all values are already above the R
table (r = 0.2096). From here, it is also known descriptions
of characteristics of respondents in the following studies:

Description Type Amount


Gender Man 40
Woman 48
Education High School 23
Diploma 2
Bachelor 58
Master 5
Age 20-30 Years 50
31-40 Years 24
41-50 Years 7
More than 50 years 7

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Volume 5, Issue 6, June – 2020 International Journal of Innovative Science and Research Technology
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Type of Business Culinary 55
Fashion 20
Services 25
Length of effort 1 year – 5 years 64
6 years – 15 years 14
More than 15 years 10
Income s/d Rp 5.000.000,00 50
Rp 5.100.000,00 - Rp10.000.000,00 16
Rp 10.100.000,00 - Rp 15.000.000,00 10
Rp15.100.000,00 – Rp 20.000.000,00 5
More than Rp 20.000.000,00 7
Table 1:- Description of Research Objective
Source: Data Processing Results 2020

In table 1, the results of data processing and  Classic assumption Test Result
discussion in this study were obtained from the A. Test normality
dissemination of questionnaires to 88 small micro
Enterprises (MSMES) as primary data. The results of the
descriptive analysis showed that respondents aged 20 years
to 30 years 50 respondents (56.80%), 31 to 40 years as
many as 24 respondents (27.30%), ages 41 to 50 as many
as 7 respondents (8%) and ages more than 50 years as
many as 7 respondents (8%). Female gender 48
respondents (54.5%) While men were 40 respondents
(45.50%). The last education of senior High School was 23
respondents (26.10%), a Diploma of 2 respondents
(2.30%), a Bachelor of 58 respondents (65.90%), and a
master of 5 respondents (5.70%). The type of culinary sub-
sector as many as 55 respondents (55%), a fashion sub-
sector of 20 respondents (20%), and a sub-sector of
services 25 respondents (25%). The duration of the effort is
1 year to 5 years as many as 64 respondents (72 .%), 6
years to 10 years as many as 14 respondents (15.9%) And
more than 10 years as many as 10 respondents (11.4%). Fig 2:- Normal P-Plot
Revenue of Rp 5,000,000.00, 50 respondents (56.80%), Rp Source: Data Processing Results 2020
5,100,000.00 to Rp 10,000,000.00, 16 respondents
(18.20%), Rp 10,100,000.00 to Rp 15.000.000, 00, 10 Figure 2 shows that the dots are spreading around the
respondents (11.40%), Rp 15,100,000.00 to Rp diagonal line and following the direction of the diagonal
20,000,000.00 as many as 5 respondents (5.70%) And more line of the chart which means that the regression model
than Rp 20,000,000.00 as many as 7 respondents (8%). used in the study fulfills the assumption of normality.
This kuisoner consists of 23 question items outlined based
on several variables to be researched i.e. decision making B. Multicolinearity Test
influence (X1), Supplier (X2) and competitive advantage This analysis is used to determine the direction of the
(X3) against channel distribution (Y). relationship between the dependent and independent
variables, whether each of them is independent positive or
negative, and to predict the value of the dependent variable
when there is an increase or decrease in independent
variables (Maida, 2017). The results of multiple linear
regression analyses can be seen in the table below.

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Volume 5, Issue 6, June – 2020 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
a
Coefficients
Unstandardized Standardized
Coefficients Coefficients t Sig. Collinearity Statistics
Model B Std. Error Beta Tolerance VIF
1 (Constant) 4.549 2.724 1.670 .099
consumer decision .205 .103 .207 1.991 .050 .882 1.134
making (X1)
Supplier (X2) .075 .080 .094 2.936 .352 .951 1.052
competitive .166 .057 .303 2.911 .205 .875 1.143
Advantage (X3)
a. Dependent Variable: channel distribution Y
Table 2:- Multicolinearity Test
Source: Data Processing Results 2020

Based on table 2 states that all variables indicate Table 2 shows the results of multiple linear regression
tolerance > 0.1. The value of VIF is < 10, that the variable decision making (X1) obtained the calculated T
coefficient tolerance the decision-making variable is 0.882 value by 1,991 and T table of 1,989. It shows that the X1
greater than 0.1 and the VIF of 1,134 is smaller than 10. variable has a significant effect on channel distribution as it
The supplier coefficient is 0.951 greater than 0.1 and the has a larger counting t compared to t tables. Whereas, the
VIF of 1.052 is smaller than 10. The coefficient of supplier variables (X2) obtained a calculated t value of
competitive advantage is 0.875 greater than 0.1 and VIF of 2,936 and T tables of 1,989. It shows that variable X2 has
1,143 is smaller than 10. This proves that there is no significant effect on channel distribution because it has a
symptom of multicholinerity in all the free variables used larger count than T table. In the variable competitive
in this study. Therefore, this regression model deserves use advantage (X3) obtained the calculated value of 2,911 and
in research studies. T table at 1,989, it shows that the variable X3 affects
significantly against the distribution of the channel because
Y = 4,549 + 0.205 X1 + 0.075 X2 + 0.166 X3 + E it has a larger count than T table.

Fig 3:- Scatterplot Analysis


Source: Data Processing Results 2020

Figure 3 shows that the dots are spreading around the diagonal line. It can be concluded that the study meets
heterokedasticity test and the value of the residue is normal.

C. Test F (simultaneous)

ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression 153.558 3 51.186 7.079 .000b
Residual 607.339 84 7.230
Total 760.898 87
a. Dependent Variable: channel distribution (Y)
b. Predictors: (Constant), competitive Advantage (X3) Supplier (X2) consumer decision making (X1)
Table 3:- The Result of F-Test
Source: Data Processing Results 2020

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Volume 5, Issue 6, June – 2020 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
The result of regression analysis in table 3 using F concluded that the variable consumer decision making
count = 7,079 with a significant rate is the probability of (X1), Supplier (X2), and competitive Advantage (X3)
0.000 < 0.05 where the value of F table = 2,710, it can be jointly influence significantly on the channel distraction.

D. T Test (partial)

Standardized
Unstandardized Coefficients Coefficients t Sig.
Model B Std. Error Beta
1 (Constant) 4.549 2.724 1.670 .099
consumer decision making (X1) .205 .103 .207 1.991 .050
Supplier (X2) .075 .080 .094 .936 .352
competitive Advantage (X3) .166 .057 .303 2.911 .205
a. Dependent Variable: channel distribution (Y)
Table 4:- The Result of Multiple Linear Regression Analysis
Source: Data Processing Results 2020

In table 4 shows that the value of a decision-making With an R count value of 0749 greater than the critical
regression in the determination of the rate of 0.050, this value of 0.60 it indicates that the question item on each
value is equal to 0.05 or the value of the < α sig, this means variable can be said to be reliable for measuring the
that the research hypothesis stating that decision-making variables.
significantly affects channel distribution is acceptable.
From the table, the value of supplier regression coefficient F. Coefficient of determination (R2)
has a cyclisification rate of 0352, this value is greater than The coefficient of determination essentially measures
0.05 or the value of the < α sig, this means that the research how far the ability of the model describes the variation of
hypothesis stating the supplier has significant effect on the dependent variable. The value of coefficient of
channel distribution, acceptable. From the table seen that a determination is between 0-1.
competitive advantage regression coefficient value has a
cyclisification rate of 0.205 This value is smaller than 0.05 Model Summaryb
or a < α sig value, this means the research hypothesis
stating the competitive advantage of significant effect on Std. Error
channel distribution is acceptable. Adjusted of the Durbin-
Model R R Square R Square Estimate Watson
E. Correlation coefficient (R) 1 .749a .202 .173 2.689 2.067
The double correlation analysis is used to look for a. Predictors: (Constant), competitive Advantage (X3)
connections between two or more free variables that are Supplier (X2) consumer decision making (X1)
collectively associated with their variables so that they can b. Dependent Variable: : channel distribution (Y)
be known for the large donation of all the free variables Source: Data Processing Results 2020
that are the research objects of their variables. The
Table 6:- The Result of the Coeffiecient of Determination
reliability test results based on Cronbach's Alpha formula
can be seen in the table below.
From the table above can be obtained the value of
b coefficiencies determination as follows:
Model Summary
KD = R2 x 100%
Std. = (0.749)2 x 100%
Adjusted Error of = 56%
R the Durbin-
Model R R Square Square Estimate Watson In table 6 It can be known that the value of R2 is 0749
1 .749a .202 .173 2.689 2.067 or 56%. This indicates that the dependent variable
a. Predictors: (Constant), competitive Advantage (X3) distribution channel (Y) can be described by independent
Supplier (X2) consumer decision making (X1) variables i.e. variable consumer decision-making (X1),
b. Dependent Variable: : channel distribution (Y) Supplier (X2), and competitive advantage (X3), amounting
Source: Data Processing Results 2020 to 56% while the remaining 44% can be influenced or
Table 5:- Koefisien Korelasi (R) explained by other factors beyond variables or other
variables that are not conscientious in this study.
From table 5 visible R value of 0.749 or 74.9%. This
indicates that there is a relationship of 74.9% between the
consumer decision-making variable (X1), the Supplier
(X2), and the competitive Edge (X3) against the Chanel in.

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Volume 5, Issue 6, June – 2020 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
V. CONCLUSION [13]. Buchari Alma. 2005. Marketing Management and
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 Simultaneous analysis results showed that the variable Jakarta.
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distribution of the creative economy with the COVID- The first mold. , Bandung.
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