The effect of service quality and marketing mix strategy towards local sustainable economic growth

Abstract

The purpose of the study is to investigate the effect of service quality and marketing mix strategy towards local sustainable economic growth. This type of research is explanatory because the purpose is to explain the causal relationship between variables by testing the hypothesis. Target population in this study are all customers or service users who use the product of MSME, and the total number of the sample used is 200. The analysis tool used is Structural Equation Modeling (SEM). The quality of service effect on marketing mix strategy means that the application of quality of service, according to customer needs, is able to create satisfaction. In other words, the better the quality of service provided to customers the higher the increase in satisfaction. The quality of service directly creates local sustainable economic growth, that means improved quality of service provided by the company to customer needs, thereby increasing local economic growth. The quality of service is influencing the local economic growth through the marketing mix strategy. Marketing mix strategy has a significant positive effect on local sustainable economics, indicating that the higher the marketing mix strategy, local economic growth will be higher as well. The mediation effect and the concept of marketing mix strategy on the effect of service quality toward local economic growth as well as the location of the study (no previous research for this relationship) can be considered as the main originalities of this research.