Clustering Home Bias Behaviour of Surakarta Traditional Food Lovers in Financial Transaction During Covid-19 Pandemic

Abstract

This research is based on two previous research's result that there was an image changing of Surakarta City from Batik's City toward City of traditional Food. Surakarta's traditional foods are culture in heritage's foods, functional foods, favorite foods have economic potential to rise Surakarta's economy growth, so analysis of clusterinhope of g was needed. Since Covid-19 pandemic, the hope of Surakarta City Government to make traditional food as an investment driver had been constrained. Financial transaction on traditional food is pushed by psychological behavior which is home bias (irrational behavior). While Covid-19 pandemic rational behavior will change to irrational behavior. The question is these changing also happened to traditional food lovers. If the answer is yes, so what should the Surakarta City government do to make their traditional food as an investment driver. The research's result is hoped to give an input for the Surakarta City government, which is home bias profile Surakarta's traditional food in doing financial transaction especially investment during Covid-19 pandemic. Based on this reason, this research is objected to do clustering the home bias profile Surakarta's traditional food in doing financial transaction especially investment during Covid-19 pandemic. In order to obtain the research's objective, the survey has been done by using 100 Surakarta's traditional food lovers as sample of this research. Purposive sampling is used as technique sampling, the all data is analysis using two step clustering method. Interesting finding of this research is there are three clusters of home bias behavior Surakarta's traditional food lovers, when they invest their money on business. Cluster 1 has financial behaviour in business investment, cluster 2 there is changing from financial behavior toward home bias behavior in business investment, and cluster 3 has home bias behavior in business investment. These result can be a policy input for Surakarta City government when they want build city branding based on Surakarta traditional food. It can be started from develop a culture protection by evaluation of effectivity and analyzing networking of development traditional food program for SME. The research's constraint is there having no data about effectivity and networking development program for SME's traditional food. The further research will be based on this research's constraint.