A Model on Creating Stability on the Price of Fish and Fisheries Product through Brand Image: a Case Study from Kei Islands, Indonesia

Abstract

Fisheries as also shows on agriculture commodities tend to have inelastic demand price, one of the reason is because the degree of substitution of fisheries product is high especially for consumption. In addition to another factor like the consistency of quality and supply of the product, price fisheries commodity especially in rural area is not stable. This research aims to form model to create as stability on the price of fisheries commodity. We conducted this research on Kei Islands, Indonesia with 224 respondents by survey and using Structural Equation Modelling (SEM) as the analysis method. The result showed that brand image had positive direct and indirect effect on customer price perception with product knowledge as the control variable. This result implied that through brand image, the price of fisheries commodity especially in rural type area can reduce the instability of demand price by put more attention on maintaining brand image attribute likes, cleanness, freshness, and quality and supply of the product while at the same time educate the customer the advantage of fisheries product compare to its substitution product.