THE EFFECT OF BUSINESS STRATEGY AND MARKETING MIXED ON SERVICE QUALITY AND FIRM PERFORMANCE

Abstract

This research was aimed to study increasing performance guidelines for construction material shops in traditional trade in order to win those in modern trade. Hence, a researcher initiate following objectives; (1) To study influential factors that have both internal influence and external influence on the performances of traditional construction material shops in order for their competitions with modern trade. (2) To analyze congruencies with the empirical data of Causal Model among the relationships; competitive strategies, marketing mix, and service qualities. The relationships also have the influences on the performances of those shops in traditional trade. (3) To use researching model to be the guideline for increasing performances of those shops in traditional trade. Regarding to suggestions from Structural equation modeling (SEM), the researcher computed sample group for 380 companies/shops. The results of this research displayed that Competitive Strategy has a positive influence on service qualities. Marketing Mix also has a positive influence on performances focusing on fierce competitions between traditional retails/shops and moderns.