Rama Septriduta Surya Negara, Christian Herdinata, Liestya Padmawidjaja, The Effect of Innovation Product and Halal Labelization on Buying Repurchase Special Food in Blitar City 167167 The Effect of Innovation Product and Halal Labelization on Buying Repurchase Special Food in Blitar City Rama Septriduta Surya Negara, Christian Herdinata, Liestya Padmawidjaja International Business Management, Universitas Ciputra, Surabaya, Indonesia Abstract: Increased growth of food and beverage businesses that grow above the Gross Domestic Product (GDP) in the Blitar City area from year to year. Making food and beverage business people must strive to maintain their competitive edge in order to maintain their business amid the many competitors that continue to emerge, especially in this study, namely the typical food product business of the City of Blitar Cang-Jo, Uceng Tho Siti, and Abon Lele Mekarsari. The purpose of this study was to determine and analyze the effect of product innovation and halal label on repur- chase interest in Blitar City. The method used in this research is quantitative. The data analysis method used is multiple linear regression using SPSS software. with a research sample of 100 respondents obtained by the technique of calculating the number of indicators of all variables at times 10. Data collection was carried out using hypothesis testing and statistical tests. The results of this study are product innovation and halal labelling have a significant effect on repurchase special food in Blitar City. Keywords: innovation product, halal labelization, buying repurchase INTRODUCTION The food and beverage business has in- creased above the Gross Domestic Product (GDP) in Indonesia, especially the Blitar City area from year to year, in 2015 it was still at 5.96%, in 2016 it was 5.95%, in 2017 it was 8.62 %, in 2018 8.60 percent and in 2019 an increase of 9.39%. The increase in business in the food and beverage industry sector is of course accompanied by a growing number of business actors (www.blitarkab.bps.go.id/2020). Research on the typical food products of the City of Blitar is focused on food product busi- nesses with the brands Dodol Cang-Jo’s, Uceng Tho Siti, and Abon Lele Mekarsari. The three products are processed food products that are quite well known in Blitar City and have made product innovations and have halal certification. The number of competitors that are increasingly popping up makes the brand have to focus on the desire or interest in consumer purchases of its products. In developing awareness of the importance of product innovation, currently the Office of Cooperatives and Micro Businesses (Dinkopum) of Blitar Regency is holding entrepreneurship training for the people of Blitar, the training held is training on innovation- based food processing carried out by Dinkopum at Balai Petung in Beru Village, Wlingi District. (www.jatimnews.com) The increase in the growth of Muslims in Indonesia and the world according to the 2019- 2024 Indonesian Sharia Economic Masterplan, which has increased by 7–8 percent per year, especially Indonesia, where the majority of the population is Muslim, has made public aware- ness of the importance of consuming halal food increasing. The halal label is also an apprecia- tion given to products that meet the halal crite- ria according to Islamic teachings. Halal food products are marked with a halal label printed on the product. The institution that has the right to issue halal labels and certificates in Indonesia is LPPOM MUI. (www.halalmui.org). Business and Finance Journal, Volume 6, No. 2, October 2021 168 LITERATUR REVIEW According to Cahyaningrum and Panjaitan (2019) that product innovation is an action taken by a company in an effort to improve the quality, usability and quality of the product and add variety to products in order to maintain and also create a competitive advantage to- wards the global market. There are five indica- tors in measuring product innovation according to Aditi (2019), namely, adding product vari- ants, adding new products, product appearance and product taste. The halal label is the inclusion of a halal statement on a product packaging to show that the product is a halal product. There are indi- cators to measure a Halal label in Khairannoor (2019), namely, the manufacturing process, raw materials, and specificity. According to Khairannoor (2019) repur- chase intention is a manifestation of customer loyalty. Although the literature identifies other dimensions of customer loyalty, behavior re- garding product repurchase has a more direct effect because repurchase intention is the ten- dency that consumers will buy goods or services at the same store and share their experience of using them with friends and relatives. Indicators of repurchase intention according to Sutisna (2010) in the journal Aditi (2019), namely, ben- efit association, priority in buying, and fre- quency of purchases. This study aims to exam- ine and analyze the effect of product innovation and halal label on repurchase in Blitar City. PREVIOUS RESEARCH Research conducted by Bunga Aditi (2019) on Innovation Product Halal Labelization in Buying Repurchase. The purpose of this study was to determine and analyze the influence of the innovation product variables and halal labelization on buying repurchase. The method used in this research is descriptive analysis method by describing the data. The data analy- sis used was Multiple Linear using SPSS soft- ware with non-probability sampling technique. The population in this study were all consumers totaling 475 respondents who bought SME prod- ucts, with a sample used of 100 respondents using the theory of Hair et al (2007). The results showed that product innovation and halal labelization had a positive and significant effect on buying repurchase. This study both examines and analyzes the halal labelization and buying repurchase variables. In Ika Yoga’s (2018) research on Halal Emotional Attachment on Repurchase Inten- tion. The purpose of this study was to examine the position of emotional attachment as a me- diation of the influence between halal aware- ness, halal logo, and food ingredients composi- tion on repurchase intention to buy halal prod- ucts. This research method is a quantitative method. This study took a sample of consumers who had consumed or bought halal products. The population obtained 384 respondents. The results showed that the halal variable was able to play an important role and significantly influ- ence the intention to buy back or buy repur- chase. This study both examines and analyzes the halal variable and buying repurchase. In the research of Panca and Kusumadewi (2019) on the effect of product innovation on repurchase intention mediated by consumer satisfaction. The purpose of this study was to determine the effect of product innovation on repurchase intention mediated by customer satis- faction. This study uses data analysis tech- niques Path Analysis. The sample size obtained by using purposive sampling method of 110 respondents. The results of this study indicate Rama Septriduta Surya Negara, Christian Herdinata, Liestya Padmawidjaja, The Effect of Innovation Product and Halal Labelization on Buying Repurchase Special Food in Blitar City 169 that product innovation has a positive and sig- nificant effect on consumer repurchase inten- tions. This study both examines and analyzes product innovation variables. Cahyaningrum and Panjaitan (2019) exam- ined the Effect of Product Innovation, Price and Location on Purchase Purchase Decisions. The purpose of this study was to determine whether product innovation, price and location partially and simultaneously had a significant effect on repurchase decisions. This type of research is causality, using data collection techniques in the form of a questionnaire. The sampling tech- nique used non-probability with purposive sam- pling method with the number of samples deter- mined by the researcher as many as 100 people and the data analysis technique used was mul- tiple linear regression. The research results of hypothesis testing in this study indicate that the variable product innovation, price and location have an effect on re-purchase decisions. This study both examines and analyzes product in- novation variables. RELATIONSHIP BETWEEN VARIABLES Bunga Aditi’s research (2019) aims to de- termine and analyze the effect of product inno- vation and halal labelization on buying repur- chase. The results of this study are product innovation and halal labelling simultaneously have a positive and significant effect on the repurchase of MSMEs in Langkat Regency. Par- tially each Product Innovation and Halal Label have a positive and significant effect on the repurchase of MSMEs in Langkat Regency. The product innovation variable has a positive value of 43.33%. This means that the influence of the product innovation variable is in line with the increase in repurchases. Partially it shows that the product innovation variable has a positive effect on increasing repurchases. The halal la- bel variable has a positive value of 61.7%, which means that the influence of the halal label variable is in line with the increase in purchase returns. This shows that the Halal labelling variable has a positive effect on in- creasing repurchases. Also research from Rantau (2019) which states that product innovation has a significant effect on buying repurchase. Marimon’s research (2020) aims to deter- mine the factors that influence the purchase intention of halal food among Spanish Muslim consumers. This research empirically provides evidence of a significant relationship between halal awareness, attitudes towards halal labels and halal purchase intentions. The results also show that the mediating effect of attitudes on the halal label is in the form of complementary partial mediation. This means that the attitude of Muslim consumers towards the halal label has a mediating effect and a direct effect on consumer purchase intentions. This result is in accordance with Ika Yoga (2018) which states that the halal variable is able to play an impor- tant role and has a significant effect on buying repurchase intention. H1: The effect of product innovation on repur- chasing special foods in Blitar City H2: The effect of the halal labelization on the re-purchase of special food in Blitar City. METHOD This research method uses quantitative research. The data used in this study are pri- mary and secondary data. Collecting data in this study using a questionnaire distributed online with reference to Likert scale measure- ment and statistically analyzed using multiple Business and Finance Journal, Volume 6, No. 2, October 2021 170 linear regression analysis method. The popula- tion in this study were consumers of Dodol Cang-Jo’s, Uceng Tho Siti, and Shredded Lele Mekarsari with the criteria of having bought a product at least three times, amounting to 100 respondents obtained by calculating the number of indicators for all variables in 10 times. con- ducted using hypothesis testing and statistical tests. RESULTS AND DISCUSSION Validity and reliability test In the validity test, it shows the results of all indicators of product innovation, halal labels and repeat purchases are declared valid because they have a significance value <0.05 Reliability test results show that all prod- uct innovation variables, halal labels and repeat purchases have a Cronbach alpha value >0.6, so all of them are declared reliable. Classic assumption test Based on the normality test, the Klomogrov - Smirnov test results show that the significance value is more than the 0.05 significance level so that it can be concluded that the residuals are normally distributed. Unstandardized coefficients mean that the distance between one data and another is not too far or extreme. Based on the results of the multicollinearity test, it shows that the tolerance value of all variables is more than 0.100 and the VIF (Variant Inflation Fac- tor) value is less than 10, namely the VIF of the product innovation variable shows a value of 1.099, and the halal label also has a value of 1.099, so it can be concluded that multicol- linearity does not occur between independent variables. Based on the results of the hetero- scedasticity test, the significance value of the product innovation variable (X1), and the halal label (X2) is greater than 0.05, it can be con- cluded that there is no heteroscedasticity in the product innovation variable (X1), and the halal label (X2). Results of Multiple Linear Regression Model The results obtained in the calculation of the multiple linear regression equation in this study are: Table 1 Results of Multiple Linear Regression Model Y = 1,006 + 0,194 X1 + 0,448 X2 Description: Y = buying repurchase Xl = innovation product X2 = halal labelization F test The value shown in the F test shows a significance of 0.000. So, it can be concluded that product innovation and halal label have a simultaneous significant effect on re-purchase because the significance value of the F test is ≤ 0.05. t test The product innovation variable has a sig- nificant value of 0.032, and the halal label is 0,000. So it can be concluded if the two vari- ables have a partial significant effect on repur- chase because the significance value is ≤ 0.05. Model Koefisien Beta t Sig. Keterangan (Constant) 1,006 Innovation Product (X1) 0,194 2,170 0,032 Signifikan Halal Labelization (X2) 0,448 5,004 0,000 Signifikan Dependent variable: buying repurchase (Y) Rama Septriduta Surya Negara, Christian Herdinata, Liestya Padmawidjaja, The Effect of Innovation Product and Halal Labelization on Buying Repurchase Special Food in Blitar City 171 Correlation Coefficient (R) and Coefficient of Determination (r2) and Adjusted R square The test results on R, r2, and adjusted r square give the result that the R value of 0.540 or 54.0% means that the relationship between the independent variable and the dependent variable has a strong enough relationship because the value does not approach 0. And the R2 value or the coefficient of determination shows the number 0.291 or 29.1%, which means that the percent- age of influence of the independent variable on the dependent variable is 29.1%, the rest is ex- plained by other variables not examined in this study. The coefficient of determination on Ad- justed R Square is 0.277, which means that the product innovation and halal labelization variables can describe the dependent variable of 27.7%, while the rest is explained by other variables not examined in this study. DISCUSSION Based on the research results, product in- novation has a significant effect on buying re- purchase. This means that existing indicators on Product Innovation have a significant influ- ence on Buying Repurchase. Product innovation has several indicators consisting of adding pro- duct variants, adding new products, product appearance, and product taste. The results of this study are supported by research conducted by Bunga Aditi (2019) who found that product innovation has a positive and significant effect on buying repurchase. The same view was also expressed by Rantau (2019) where researchers found that product innovation had a positive and significant effect on buying repurchase. Based on the results of the research, product innovation has a very important role because it can affect buying repurchase of typical foods in Blitar, namely Cang-Jo’s, Uceng Tho Siti, and Abon Lele Mekarsari. Therefore, these typical food products must pay more attention to prod- uct innovation in order to encourage consumers to buy repurchase. Therefore, what can be done with Blitar’s typical food products, namely Cang-Jo’s, Uceng Tho Siti, and Abon Lele Mekarsari, is to add product variants according to market demand, add new products, further improve product appearance and pay attention to the quality of taste in products. Based on the research results, Halal Labeli- zation has a significant effect on Buying Repur- chase. This means that the indicators in halal labelization have a significant effect on Buying Repurchase. Halal labelization has several indi- cators which consist of the process of making raw materials and specificities. The results of this study are supported by research conducted by Marimon (2020) who found that halal labelization has a positive and significant effect on buying repurchase. The same view was ex- pressed by Yoga (2018) finding that halal labelization has a positive and significant effect on buying repurchase. This study provides re- sults that halal labelization has a very important role because it can affect buying repurchase for typical food in Blitar, namely Cang-Jo’s, Uceng Tho Siti, and Abon Lele Mekarsari. Therefore, the typical food products of City B must pay more attention to halal labelization in order to encourage consumers to buy repurchase of these products. So what can be done by typical food products in the city of Blitar is to educate the public or consumers about the importance of halal certification in food products and high- light the ownership of the halal certification that the product has. Business and Finance Journal, Volume 6, No. 2, October 2021 172 CONCLUSIONS AND RECOMMENDA- TIONS Conclusions Product innovation has a significant effect on repurchase in Blitar City, the first hypothesis (H1) is accepted. And halal label has a signifi- cant effect on repurchase in Blitar City, the first hypothesis (H2) is accepted Recommendations For the special food products of Blitar City, which are typical food products of the city of Blitar, it is expected to pay more attention to product innovation with indicators of adding product variants, adding new products, paying attention to product appearance and taste of products, typical food products of Blitar city are also expected to pay attention to halal labelization by educating the public regarding the importance of the halal label and highlight- ing that the product has halal certification, this needs to be considered as much as possible as a form of strategy to increase buying repur- chase and as a consideration for taking this typical food product in the city of Blitar to continue to run amid the many business com- petitors in the similar food sector. Suggestions for future researchers, based on overall research results. The suggestion given is that the next researcher is expected to consider expanding the scope of the sample to a different food business, either a different brand or a dif- ferent type of food, and by deepening the research or adding other relevant variables to be studied. REFERENCES Bunga, Aditi. (2019). Innovation Product and Halal Labelization in Buying Purchase. International Research Jurnal of Business Studies, Vol. 12, No. 1. Cahyaningrum, Novia & Panjaitan, Hotman. (2019). Pengaruh Inovasi Produk, Harga dan Lokasi terhadap Keputusan Pembelian Ulang. Ika Yoga. (2018). Halal Emotional Attachment on Repurchase Intention. Journal of Eco- nomics and Business. ISSN:2503-4235 (p): 2503-4243 (e). Khairannoor, Muhammad. (2019). Pengaruh La- bel Halal dan Citra Merek terhadap Niat Pembelian Ulang. Marimon, Frederic, Pradana, Mahir, & Ruben, Huertas Garcia. (2020). Spanish Muslims’ halal food purchase intention. International Food and Agribusiness Management Re- view, Vol. 23, Issue 2. Rantau, Aga Shanada. (2019). Pengaruh Citra Merek, Kesadaran Merek, dan Inovasi Pro- duk terhadap Keputusan Pembelian pada Mr. Suprek Surabaya. ATTACHMENT Tabel Validity Test Result Variabel Pearson Correlation Nilai sig. (2-tailed) Kesimpulan Innovation Product (X1) X1.1 0,290 0,003 Valid X1.2 0,318 0,001 X1.4 1,000 0,000 Halal Labelization (X2) X2.2 0,438 0,000 Valid X2.3 0,440 0,000 X2.4 0,404 0,000 X2.5 1,000 0,000 Buying Repurchase (Y) Y.2 0,524 0,000 Valid Y.3 0,663 0,000 Y.4 1,000 0,000 Rama Septriduta Surya Negara, Christian Herdinata, Liestya Padmawidjaja, The Effect of Innovation Product and Halal Labelization on Buying Repurchase Special Food in Blitar City 173 Tabel t Test Tabel F Test Tabel Heteroskedastisitas Test Tabel Kolmogorov-Smirnov Test Tabel Reliability Test Result Kolmogorov-Smirnov Sig. Unstandardized coefficients 0,161 Model Unstandardized Coefficients Keterangan VIF Innovation product (X1) 1,099 Tidak terjadi multikolinearitas Halal labelization (X2) 1,099 Tidak terjadi multikolinearitas Dependent variable: buying repurchase (Y) Model Sig. Keterangan Innovation product (X1) 0,861 Tidak terjadi heteroskedastisitas Halal labelization (X2) 0,767 Tidak terjadi heteroskedastisitas ANOVA a Model F Sig. Regression 19.935 0,000 Sumber: data diolah, 2020 Indikator Jumlah Sampel Cronbach’s Alpha Keterangan Innovation Product (X1) X1.1 100 0,609 Reliabel X1.2 100 X1.3 100 X1.4 100 X1.5 100 Halal Labelization (X2) X2.1 100 0,782 Reliabel X2.2 100 X2.3 100 X2.4 100 X2.5 100 Buying Repurchase (Y) Y.1 100 0,808 Reliabel Y.2 100 Y.3 100 Y.4 100 Model t Sig. Keterangan Innovation product (X1) 2,170 0,032 Signifikan Halal labelization (X2) 5,004 0,000 Signifikan Dependent variable: buying repurchase (Y) Tabel t Test Tabel Correlation Coefficient (R) and Coefficient of Determination (r2) and Adjusted R square Test R R2 Adjusted R Square 0,540 0,291 0,277 Business and Finance Journal, Volume 6, No. 2, October 2021 174