Classification of product life cycle cluster to improve the performance of SMEs apple chips

Abstract

Improved performance of apple chip SMEs in Malang Raya is strongly influenced by groups based on the product life cycle classification. The purpose of this study was to classify apple chip SMEs based on the results of the classification at the product life cycle stage, determine the prediction of apple chip sales and improve the performance of apple chip SMEs in Malang Raya. The research location was in Malang Raya area which consists of Malang Regency, Malang City, and Batu City. Data collection was obtained from thirty-one respondents who were the owners of apple chips SMEs in Malang Raya. Data analysis for cluster classification used the product life cycle stage and performance improvement using artificial neural networks for prediction of sales production and determination of dominant variables based on Cronbach's alpha and dominant indicators based on corrected item-total correlations. The results showed that stage 1 was 2 SMEs, stage 2 was 16 SMEs, stage 3 was 11 SMEs and stage 2 was SMEs. Improving the performance of apple chip SMEs in Malang Raya through sales predictions in 2019-2023 is more focused on improving innovation through the ability to see the development of consumer tastes and follow the development of technology related to product processing and marketing.