<![CDATA[Grind Coffee is a coffee shop business in Pasuruan City that faces a gap between its active offline sales and its newly launched online sales on the Shopee marketplace. This study aims to analyze the influence of product innovation and service quality on the competitive advantage of Grind Coffee. A quantitative approach was employed using a sample of 60 consumer respondents determined through purposive sampling. Data were collected through a five-point Likert-scale questionnaire and analyzed using validity and reliability tests, classical assumption tests, and multiple linear regression. The results show that product innovation and service quality simultaneously have a significant effect on competitive advantage (F = 67.731; sig. = 0.000), with an Adjusted R² of 0.693, indicating that 69.3% of the variation in competitive advantage is explained by the two variables. Partially, product innovation has a significant positive effect on competitive advantage (t = 3.874; sig. = 0.000), whereas service quality does not have a significant effect (t = 1.535; sig. = 0.130). These findings suggest that Grind Coffee should continue strengthening product innovation as the dominant driver of its competitiveness on the Shopee marketplace, while still maintaining service quality as a minimum standard of customer experience.]]>
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