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The Impact of customers' relation quality and sensing on the marketing performance for micro industries development in Banten Province, Indonesia

Listed author(s):
  • Suherna


    (Department of Management, Diponegoro University, Indonesia)

  • Weksi Budiaji


    (Agribusiness Department, Sultan Ageng Tirtayasa University, Indonesia)

This research was intended to evaluate the marketing performance as one of the food and beverage Micro Industries (MI's) constraints in Banten Province. We built a relation model between the marketing performance and the customer's relation quality and sensing by which they determined some empowerment development strategies for independence and capable MI. Data for the model building was taken by interview based on a set of questionnaire to the 130 chosen respondents by simple random sampling. They were split into training and test sets. Then three regression models were applied namely best-subset, ridge, and lasso regression model to the training set. The result showed that the ridge regression model was the best model having the smallest MSE (Mean Squared Error). When it applied to the test set, its standardized coefficients showed the customers' relation quality needed to be improved for the MI development strategies. There were keeping, offering, and maintaining strategies as the main strategies to develop the MI. The keeping strategy related to trust and agreement, while the offering strategy was supplying products and information. The maintaining strategy, on the other hand, was preserving emotional closeness.

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Article provided by Pro Global Science Association in its journal Published in Review of Applied Socio-Economic Research.

Volume (Year): 7 (2014)
Issue (Month): 1 (June)
Pages: 147-151

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Handle: RePEc:rse:wpaper:v:7:y:2014:i:1:p:147-151
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  1. Richardson, Scott A. & Sloan, Richard G. & Soliman, Mark T. & Tuna, Irem, 2005. "Accrual reliability, earnings persistence and stock prices," Journal of Accounting and Economics, Elsevier, vol. 39(3), pages 437-485, September.
  2. Frank Barry & Holger Gorg & Eric Strobl, 2005. "Foreign direct investment and wages in domestic firms in Ireland: Productivity spillovers versus labour-market crowding out," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 12(1), pages 67-84.
  3. Gruner, Kjell E. & Homburg, Christian, 2000. "Does Customer Interaction Enhance New Product Success?," Journal of Business Research, Elsevier, vol. 49(1), pages 1-14, July.
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