People of Java Island in the Midst of Deflation: Community Response and Adaptation

Aprilia Aries Tanty; Mas’udah Imami Yazid

Authors

Aprilia Aries Tanty Universitas Negeri Surabaya Author
Mas’udah Imami Yazid Author

Keywords:

Deflation, price reduction, income, purchasing interest, community of Java Island.

Abstract

The purpose of this study is to examine how income and price changes affect consumers' desire to buy on Java Island. A total of 106 randomly selected Javanese residents between the ages of 18 and 60 participated in the quantitative survey-based study. An online survey using a Likert scale was used to gather data, which was then validated and reliability tested. The impact of independent variables on the dependent variable was examined through data analysis utilizing multiple linear regression. The results show that income has no substantial impact on purchase interest, while price decrease does. In conclusion, price reduction is the primary factor affecting the purchasing power of the community in Java Island, especially in deflationary situations. This research provides implications for economic policy, particularly in efforts to maintain the stability of the community's purchasing power.

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