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Relationship between Customer Management Micro, Small and Medium Enterprises (MSMEs) and Marketing Performance in Banten

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  • University faletehan banten

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Introduction: The current economic crisis in Indonesia, micro, small, and medium-sized enterprises (MSMEs) have proven to be very resilient. When expanding a nation's economy, micro, small, and medium-sized businesses (MSMEs) play a crucial and vital role, so that’s why the researcher want to know about The aim of this research is to see the influence of customer relationship quality on the marketing performance of MSMEs. Materials and Methods: Sampling from food and beverage MSMEs in Banten province. The sample size was 209 respondents. Data collection using a questionnaire with direct interviews with respondents. Secondary data was obtained from BPS Banten Province. analysis technique using the SEM method Results: There is a relationship between Micro, Small and Medium Enterprises (MSME) Customer Management and Marketing Performance with a p value above 0.05.
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Journal of Sustainable Tourism and Entrepreneurship (JoSTE)
ISSN: 2714-6480, Vol 5, No 1, 2023, 193-204 https://doi.org/10.35912/joste.v5i1.2005
Relationship between customer Management
Micro, Small and Medium Enterprises
(MSMEs) and marketing performance in
Banten
Suherna Suherna1*, Titin Nasiatin2
University Sultan Ageng Tirtayasa, Indonesia1
University Faletehan, Indonesia2
Suherna@untirta.ac.id
Article History
Received on 4 March 2024
1st Revision on 19 march 2024
1st Revision on 4 April 2024
Accepted on 18 April 2024
Abstract
Introduction: The current economic crisis in Indonesia, micro,
small, and medium-sized enterprises (MSMEs) have proven to be
very resilient. When expanding a nation's economy, micro, small,
and medium-sized businesses (MSMEs) play a crucial and vital role,
so that’s why the researcher want to know about The aim of this
research is to see the influence of customer relationship quality on
the marketing performance of MSMEs.
Research methodology: Sampling from food and beverage
MSMEs in Banten province. The sample size was 209 respondents.
Data collection using a questionnaire with direct interviews with
respondents. Secondary data was obtained from BPS Banten
Province. analysis technique using the SEM method
Results: There is a relationship between Micro, Small and Medium
Enterprises (MSME) Customer Management and Marketing
Performance with a p value above 0.05.
Limitations: This research was only conducted in Banten Province
with the characteristics of food and beverage entrepreneurs who
were assisted by the Banten Provincial Industry and Trade Office,
so similar research is possible in food and beverage businesses that
are not assisted by the Banten Provincial Industry and Trade Office
Contribution: This research empowers food and beverage MSME
groups through a communication forum, to facilitate the delivery of
communication and coordination in coaching.
Novelty: This study is one of the first to discuss Management
Micro, Small and Medium Enterprises (MSMEs) and Marketing
Performance perceptions of sustainability issues in the Indonesian
context.
Keywords: Customer Management, Micro, Small and Medium
Enterprises (MSMEs), Marketing Performance
How to Cite: Suherna, S., & Nasiatin, T. (2024). Empowering local
communities engagement: Rural tourism and business innovation
for SDGs desa. Journal of Sustainable Tourism and
Entrepreneurship, 5(1), 45-56.
1. Introduction
Micro, small, and medium enterprises play a vital and significant role in the economic progress of a
country, and this is true for both emerging and established countries. Businesses classified as micro,
small, and medium enterprises can enhance job opportunities and offer a wide range of economic
services to the community. These businesses also have the potential to contribute to the process of
equalization, as well as to boost community revenue and foster economic expansion. Due to its capacity
to drive the economic activities of the Indonesian people and become the primary source of income for
many people, the empowerment of the micro, small, and medium-sized enterprise sector is very
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46
strategic. This is because it has the potential to improve the prosperity of life. During The current
economic crisis in Indonesia, micro, small, and medium-sized enterprises (MSMEs) have proven to be
very resilient. The ability of micro, small, and medium-sized enterprises (MSMEs) needs to be
empowered and strengthened continually by making an effort to minimize the restraints that MSMEs
face. This would allow MSMEs to make the most significant possible contribution to the improvement
of the welfare of the community.(Halim, 2020)
Because it can make a significant contribution, particularly in employment, the micro, small, and
medium-sized enterprise sector cannot be deemed a minor role; efforts that can be made to ensure that
micro, small, and medium-sized enterprises (MSMEs) are competitive include collaboration with major
corporations or with other MSMEs, the utilization of appropriate technology, and ongoing innovation.
When expanding a nation's economy, micro, small, and medium-sized businesses (MSMEs) play a
crucial and vital role.(Sarfiah, Atmaja, & Verawati, 2019) This is true for both developing and
developed nations. The ability of micro, small, and medium-sized enterprises (MSMEs) needs to be
continually empowered and strengthened by trying to remove the restraints they are now facing. This
would allow them to significantly contribute to improving the community's welfare. Unlike major
corporations, micro, small, and medium-sized enterprises (MSMEs) require the most significant labor.
(Bappenas RI, 2023)The fact that micro, small, and medium-sized enterprises (MSMEs) can participate
in the development of the national economy demonstrates that they have the potential to be developed
in Indonesia.(Halim, 2020)
The Secretariat Economic Capacity Building Policy Team establishes the parameters for Micro, Small,
and Medium Enterprises (MSMEs) as industrial entities employing less than 100 individuals.(TNP2PK
& LDFEB-UI, 2021) Secretariat Economic Capacity Building Policy Team classifies sectors into four
industry groupings based on the personnel count as follows: The classification of industries is as
follows: (1) micro-industries with 1 to 4 employees; (2) small industries with 5 to 19 employees; (3)
medium industries with 20 to 99 employees; (4) significant industries with 100 or more people.
Describes the financial characteristics of Indonesian small entrepreneurs: (1) Initiating a small business
with minimal capital and limited owner expertise. (2) Seeking financial support from banks. (3) Facing
challenges in obtaining loans from banks due to limited collateral, inadequate proposals, and other
factors. (4) Absence of detailed cost of goods produced records, relying on rough estimations. (6) Lack
of comprehension regarding the importance of financial records and accounting. (7) Inadequate
understanding of financial statement presentation principles and the ability to analyze them. (8)
Difficulty in selecting relevant and valuable information.(Makassar, 2021)
Bappenas reports that Micro, Small, and Medium Enterprises (MSMEs) constitute Indonesia's
predominant portion of enterprises. There are a total of 52.76 million MSME participants across
different industries.(Bappenas RI, 2023) Approximately 98.6% of entrepreneurs in the country fall
under the small or micro companies category, 1% are considered medium-sized entrepreneurs, and 0.4%
are categorized as significant entrepreneurs. MSMEs account for 56.53% of the gross domestic product
(GDP), according to the data from BPS in 2022. (Dodi Herlando, 2022) According to Bappenas's
research, MSME actors have needed help accessing capital facilities, with only 8% managing to secure
bank loans. This issue might occur because many Micro, Small, and Medium Enterprises are deemed
unbankable. This is mainly because they need proper bookkeeping practices or have inadequate
financial administration systems, preventing them from preparing a standard proposal to seek bank
credit.(Bappenas, 2022) This achievement still needs to reach the aim of Rp 20 trillion Bappenas set for
himself. Another circumstance related to the success of micro, small, and medium enterprises in
Indonesia is adopting the ASEAN China Free Trade Area (ACFTA) between ASEAN and China. This
free trade area allows Chinese products that enter Indonesia to have exceedingly competitive prices.
This presents a significant obstacle for Indonesia's micro, small, and medium-sized enterprises
(MSME).
For micro, small, and medium enterprises (MSMEs) to compete and innovate in a dynamic business
environment, the direction and objectives of micro, small, and medium enterprise development must be
directed at developing customer relationships with companies that produce performance. Therefore,
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when formulating the company's market penetration strategy, Micro, Small, and Medium Enterprises
(MSMEs) need to strengthen their emphasis and attention on family relationships as a determining
factor. Small and medium-sized enterprises (MSMEs) can grow their capabilities by establishing links
and interactions with other organizations and utilizing the complementary assets of these other
organizations.(Natoil, Sopi, & Hartarini, 2023)
The relationship itself is defined as affiliations of persons, groups, or organizations that communicate
with each other in order to achieve mutual advantages. It is anticipated that the condition of a vast
business network will result in an improvement in the marketing performance of a person or
organization. (Mardiatmi & Pinem, 2021) provides an explanation of marketing performance, which is
a factor that is widely used to measure the results of a company's various strategies. Using an activity-
based measure, which is a measure that can describe the marketing activities that produce marketing
performance, the results of the company's strategy are measured. This measure is used to measure the
effectiveness of the strategy.
When properly operating a business partnership, the presence of an entrepreneurial spirit and traits on
the part of the entrepreneur or company owner is essential. When we say that entrepreneurs have an
entrepreneurial spirit and qualities, we mean that they have a strong desire to do business, a strong need
for success, a solid want to take chances, and a strong willingness to take risks.(Riani, Prabowo, &
Andriyani, 2019) Because a company's success depends on how it collaborates with other organizations
that will affect the production and delivery of goods and services, these traits are vital. Therefore, the
company must continue existing to prevent it from being eliminated from the competition. This could
be accomplished by building competitive advantages and increasing marketing performance.(Faidati,
2020)
2. Literature Review
2.1. MSME Customer Management
States that collaborative partnerships in business markets are becoming increasingly vital for customers
and suppliers. This is true for both parties involved. Customers must decide whether to give their
business to a new supplier relationship, continue to keep and build a beneficial relationship, or withdraw
from a less close relationship. However, suppliers are confronted with the commoditization of products
and are looking for ways to differentiate themselves through their ties with their customers. Since
2024,(Gaffar, Koeswandi, & Ciptagustia, 2024) association between customer relationship
management (CRM) and overall marketing performance has been statistically significant and beneficial.
Marketing performance is directly and positively correlated with the degree to which attention is paid
to the most important clients. A substantial positive link exists between the level of consumer
knowledge and the level of marketing performance. The findings of this study indicate that the strategy
that an organization takes to manage its relationships with customers, which encompasses strategic,
organizational, and system dimensions, directly impacts the profitability of the services provided to
customers.(Adewole, 2018)
The research conducted by (Sari & Siswahyudianto, 2023) demonstrated that the implementation of
customer relationship management has a beneficial impact on the enhancement of customer knowledge
and customer happiness. Concluded that the quality of service has a significant role in developing long-
term connections with customers. the supplier's perspective, this connection results in the creation of
barriers to competition, a reduction in price competition, and the generation of more income per client
while simultaneously reducing costs. Relationship quality is a term that characterizes the closeness,
emotional level, reciprocity, and frequency of communication that exists between individuals within an
organization. It is a term that relates to the intensity of emotional interactions that exist inside an
organization. Interpersonal quality is a component of social capital, state that higher levels of trust are
facilitated by intense interpersonal proximity through the use of social capital.
The fact that relationships are more than just a series of transactions that take place over time may be
demonstrated by a few of the relationships now in place in the market for service businesses. According
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48
to(Rahadian & Thamrin, 2023), the customer's impression of the intrinsic quality of the connection (also
known as relationship strength) and the customer's opinion of the provider are the two factors that
influence the customer's behavior while purchasing goods or services. Customer's willingness to
purchase additional products from the same institution and not switch to a competitor is contingent upon
the customer's prior experience with the organization in terms of the services it offers, the benefits that
are anticipated to be obtained from purchasing products from the organization, and the customer's
confidence in the organization's capacity to deliver services of high quality.
In the marketing literature, (Yakob, Yakob, B.A.M., & Rusli, 2021)proposes two essential notions that
pertain to critical relational marketing outcomes. These constructs are customer loyalty and (positive)
word-of-mouth customer communication. According to our understanding, customer loyalty is centered
on the repurchase behavior prompted in customers by marketing operations. As a result of the rising
expertise of experienced customers, it is frequently claimed that the cost of retaining a loyal client is
less expensive than the cost of obtaining a new customer and the cost of customer attrition throughout
the later phases of the relationship life cycle. This is about the cost reduction effect. It has been that
norms of reciprocity, togetherness, interdependence, and degrees of trust with other individuals or
groups characterize relationships characterized by solid interpersonal links.
According to(Nurlinda, Novita, Siregar, Hanum, & Hiya, 2023), a business model can apply universally
to some customer interactions or client portfolios to improve a firm's performance and accommodate
diversity in value creation. Investing in business model differentiation can enhance customer
relationship performance by enabling controlled adaptation to unique client interactions and portfolios.
In a two-stage study, (Utami & Sudarmiatin, 2022) showed that introducing CRM processes positively
improves corporate performance. One stage that has the most vital link with firm performance is the
relationship maintenance stage, followed by the initiation stage. On the other hand, the termination
stage does not have a significant relationship with firm performance. Companies will perform better on
the critical dimensions if they can better understand consumers' value to the organization. Following
this, the organization will be better positioned to manage its relationships with individual customers. It
will be able to more accurately identify the extent to which these ties contribute to the profitability of
the unit or the company. Therefore, it is possible to deduce that customer relationship management
(CRM) can deliver the outcomes that businesses anticipate when the process is carried out efficiently.
However, the process is only capable of taking place in particular activities.
(Utami & Sudarmiatin, 2022) state that high-level customer relationship management can be understood
to mean that businesses can tailor their interactions with customers to the various stages of their
customers' life cycles and that these interactions can allow businesses to exert some influence over the
active stages of the customer's life cycle. With the help of this action, the resources spent on a client
will be brought into alignment with the revenue or profit gained from that same customer. Very
profitable consumers or those deemed to have "high potential" will receive disproportionate resources
from businesses. This is because these consumers are considered good resource allocation candidates.
The company will also be able to save money by avoiding clients who are not profitable or customers
who are profitable but very thin. These consumers will either abandon the relationship or choose to
grow their relationship with the company, which is the focus of the analysis.
According to(Suryana, Rifa’i, & Firmansyah, 2023), one of the additional factors that relationship
managers should consider is the control they have over heterogeneity in satisfaction-retention
connections. Understanding the impact of customer satisfaction and retention commitment relationships
beyond the inherent differences in customers' tendency to remain with the company enables relationship
managers to serve their customers better. In addition to having a lower likelihood of being loyal to a
brand, specific customers are either more or less sensitive to shifts in the level of happiness they
experience. The managers can increase their return on marketing investment if they can determine
which customers are likely to remain loyal to a particular supplier and are likely to respond to activities
designed to improve customer satisfaction.
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2.2 Innovation Theory
The success rate of an effort made by individuals, groups, organizations, or enterprises is reflected in
performance, which reflects the success rate. Many academics, like(Zainuddin & Sudarmiatin, 2023),
have defined performance as the results that have been accomplished as a result of what has been done
by owners or managers while running a firm. According to (Ikramuddin, Matriadi, Yusuf Iis, &
Mariyudi, 2021), performance measures success or accomplishment in accomplishing organizational
goals. Functionally, a company's performance will be reflected in the departments of human resource
performance, production performance, marketing performance, and financial performance bodies. An
indicator of work success or actual work performance accomplished by an individual, group, or
organization due to having carried out its responsibilities appropriately is referred to as performance.
The growth of the business is the performance metric As a result, it is recommended to use multiple
dimensions, such as growth, efficiency, profit, and market share. The company's performance is the
most essential factor in determining whether it will accomplish the set objective. The company's
financial success, its operational performance, and its employees' performance are essential components
of the business's overall performance.
The corporation's success reflects the performance of the various functional managers who carry out
their duties in an organizational setting. From a functional standpoint, the company's performance will
be reflected in its human resources, operations and production, marketing, and financial performance
(Sulastini & Darmawi, 2022). It is generally possible to measure effective company performance
through several indicators, including total sales volume, market share, costs, return on assets, profit
contribution, and customer satisfaction, as stated. Effective company performance is an overall
evaluation of a company's sales results.
Performance that is satisfactory for a corporation indicates the success and effectiveness of the
company's actions. The effectiveness of operational performance can be evaluated based on various
factors, including product innovation, the introduction of new items, and market segmentation. (Linda,
Rahim, Suhery, Ravelby, & Yonita, 2022) state that there are three different ways to consider at this
time: There are three types of measurements: (1) financial measures, such as return on equity and profit;
(2) productivity measures, such as product quality and market share; and (3) multi-dimensional
measures, which include market development, profitability, and new product development. Meanwhile,
(Athia, Soetjipto, & Efendi, 2023) evaluated the company's performance by utilizing measures such as
the growth of sales and revenue, the growth of market share, the growth of assets, the development of
new products, staff morale, and employee welfare, respectively.
(Linda et al., 2022) use two construct dimensions to measure the performance of a company or
organization. The first construct dimension is objective performance, which includes the financial
performance or performance based on marketing, such as utilization rate, profitability, and market
share. The second construct dimension is subjective performance, which includes measurements of
customers and employees, such as service quality, customer satisfaction, and employee job satisfaction.
In addition, the measurement of marketing performance is comparable to the measurement of the
performance of the firm or organization.
Performance is a multidimensional concept that is the product of the various activities carried out by an
organization. The marketing performance, financial performance, and human resource performance of
a firm are four indicators that can be used to determine the level of success a corporation has achieved.
A company's success can be evaluated by combining the measures obtained from each function,
specifically the manufacturing, marketing, and finance activities. The characteristics of cost, quality,
load capability, productivity, efficiency, and flexibility are the metrics that are used to evaluate the
performance of the manufacturing function. Customer happiness and the pace of sales growth are two
metrics used to evaluate the effectiveness of the marketing function. Return on assets (ROA), return on
investment (ROI), and total assets are the metrics that are used to evaluate a company's financial
success. Cost, quality, and adaptability are three metrics that can be used to evaluate the performance
of a business.(Rashid, Nurunnabi, Rahman, & Masud, 2020)
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Financial performance, business performance, and organizational performance are the three dimensions
that (Rita & Thren, 2019) developed to evaluate performance. During this time, propose that two
indicators can be used to evaluate the performance of a business. These indicators include financial and
non-financial indicators. While this is happening, evaluates the performance of businesses based on
market share, sales growth, and profit growth measurements. This is because small companies are
typically less transparent in their financial reporting, which makes it more challenging to understand
what they are trying to convey. They demonstrated during their research that subjective performance
measures have high validity and reliability. In their study, demonstrated a substantial link between
subjective and objective performance measurements. The findings of their research demonstrated this.
Previous studies have mainly concentrated on characteristics that are readily accessible and
straightforward to gather. This study opted for subjective performance measurements for the following
reasons: (1) Subjective performance measurements align with objective performance and exhibit high
validity and reliability. (2) Micro, small, and medium enterprises need help in finance and accounting,
making it arduous to acquire objective performance measurements.
3. Research Methodology
This research design uses a quasi-experiment. Types and sources of data using primary and secondary
data. Primary data was collected through interviews with all industrial entrepreneurs selected for
research in the Banten area. Meanwhile, secondary data is from BPS, the Department of Industry and
Trade, and the Department of Cooperatives and MSMEs in the Banten region. The total population in
this study was 409 respondents; sample selection was carried out using purposive sampling to become
209 respondents. Data analysis using the Structural Equation Modeling (SEM) test using the AMOS 18
(Analysis of Moment Structure) program.(Abdillah, W., HM., J., & Prabantini, 2023)
4. Results and Discussions
4.1 Results
4.1.1 Respondent characteristics
Table 1.
Respondent characteristics
Amount
(Person)
%
Gender
Man
178
85,17
Woman
31
14,83
Age
20 - 29 years old
19
9,09
30 - 39 years old
48
22,97
40 - 49 years old
81
38,75
> 50 years old
61
29,18
Position
Manager
24
11,48
Owner and manager
185
88,52
Education
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From the results above, the gender criteria are mostly men, 85.17%, with characters aged 40-49 years
38.75%. The average position of owner and manager is 88.52%, last education is senior high school
70.55% and work experience for 6-10 years is 30.44%
4.1.2 Quality of Customer Relationships with Marketing Performance
The results of the confirmatory factor analysis of the Customer Relationship Quality variable
can be seen in Figure 4.2 below.
Figure 1. Confirmatory Factor Analysis Customer Relationship Quality Variables
Elementary School
14
6,70
Junior High School
27
12,92
Senior High School
147
70,33
Bachelor degree
9
4,31
Other
12
5,74
Experience
3 - 5 years old
86
41,15
6 - 10 years old
63
30,14
11-15 years old
41
19,62
> 16 years old
19
9,09
Total
209
100
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As shown in Figure 4.1. Of the eight variable indicators of customer relationship quality, four research
indicators meet the criteria: loading factor values above 0.50. The following are indicators that have
loading factor values above 0.50.
Table 2. CFA Measurement Results Customer Relationship Quality Variables
Variable
Indicator
Loading
Value
Quality of Customer Relations
KHP 3
KHP 4
KHP 5
KHP 6
0,57
0,51
0,50
0,51
Indicators whose loading value is less than 0.5 will be removed from the measurement model. The
results of the study show that although the indicators that are not significant are removed from the
measurement model, the remaining indicators meet the criteria to be able to measure each construct.
The higher the quality of customer relationships, the higher the marketing performance. The estimated
coefficient for this test is positive at 0.04, meaning that the test results are based on the hypothesis that
increasing the quality of customer relationships positively impacts marketing performance. The
estimated parameters between customer relationship quality and marketing performance produced a CR
value 0.288. This CR value is greater than the critical value with a significance level of 5%, which is
1.96, so it can be concluded that this hypothesis is not proven at the 5% significance level. Apart from
looking at the CR value, another way to conclude a hypothesis can also be seen from the P-value. Based
on the analysis results, a P-value of 0.77 was obtained because the P-value was more significant than
0.05 and 0.10, so H5 was not proven at the 5% or 10% significance level.
Figure 2. Confirmatory Factor Analysis Marketing Performance Variables
The results of confirmatory factor analysis between marketing performance variables produced an
initial model, namely in the form of loading factor values for each construct indicator. As shown in
Figure 4.3, there are several research indicators that meet the criteria, namely having loading factor
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values above 0.50. This indicator consists of three indicators for the Marketing Performance construct.
The following are indicators that have loading factor values above 0.50
Table 3. CFA Measurement Results of Initial Model Marketing Performance
Variable
Indicator
Loading Value
Marketing Performance
KP1
KP3
KP4
0,69
0,85
0,56
Hypothesis is states that, the higher the Business Network Intensity, the higher the marketing
performance. The estimated coefficient for this test is positive, equal to = 0.277, meaning that the test
results are based on the hypothesis that increasing business network intensity impacts increasing
marketing performance.
The test results on this causal relationship show a critical ratio (c.r.) value of 2.069 with a p-value of
0.039, which means a positive and significant influence at the α = 5.00% level. Thus, hypothesis this,
which states that the higher the Customer Relations (KHP), the higher the Marketing Performance (KP),
can be accepted.
4.2. Discussion
Testing the effect of Customer Relationship Quality on Marketing Performance shows insignificant
results in a positive direction. From these results, it can be explained that the better the Customer
Relationship Quality, the better the Marketing Performance, but the Customer Relationship Quality
does not affect Marketing Performance, which means it does not support the hypothesis 1.
The quality of customer relationships after going through CFA analysis in this study is measured by
three indicators. Based on the value of each loading factor on the Customer Relationship Quality
variable, it can be explained that the contribution of each indicator in forming the Customer
Relationship Quality variable, successively from the highest, is KHP 4 (providing offers to outlets that
buy in quantity the big ones) KHP 6 (Prioritizing outlets in establishing business relationships), KHP 5
(always maintaining agreements with outlets) and KHP 3 (having emotional closeness to outlets).
Meanwhile, Marketing Performance after CFA is measured by three indicators. The contribution of
each indicator in forming the Marketing Performance variable, successively from the highest, is KP3
(experiencing a high increase in sales volume), KP1 (the company's sales results experiencing high
growth), and KP4 (increase in the market area).(Adewole, 2018)
Indicator support for the Customer Relationship Quality variable, namely KHP 4 (providing offers to
outlets that buy in large quantities), KHP 6 (Prioritizing outlets in establishing business relationships),
KHP 5 (always maintaining agreements with outlets), and KHP 3 (having emotional closeness with
outlets) has no impact on (KP1) high increase in sales volume) KP1 (the company's sales results
experience high growth) and KP4 (increase in market area).(Hardilawati, Sandri, & ..., 2020) According
to empirical data, not all MSME players can provide offers to outlets, prioritize them in establishing
business relationships, and always maintain agreements with them, so they cannot improve marketing
performance. (Rahmadi, Djunaedi, & Nurlaely, 2021)
Even though the results of testing hypothesis 1 are not proven, the direction of the relationship is
positive, meaning that increasing the quality of customer relationships has an impact on increasing
marketing performance, meaning that when MSME players improve the quality of customer
relationships by providing offers to outlets that buy in large quantities, prioritizing outlets in
establishing business relationships, always maintaining agreements with outlets and having emotional
closeness with outlets, the Marketing Performance of MSME business actors has increased, with a high
increase in sales volume, the company's sales results have experienced high growth and an increase in
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54
market area. The results of this research are based on the studies of (Sulastini & Darmawi, 2022). which
states that there is a positive relationship between the quality of customer relationships and marketing
performance.
According to the research results of (Linda et al., 2022), interaction with customers during certain stages
of the product development process positively affects product success. Specific relationships between
companies and customers as business partners positively affect company performance. This relationship
helps share information, especially regarding product features and services consumers desire. (Yullya
Ramadonna, Nasfi, 2019)research results also show a relationship between the quality of customer
relationships and marketing performance. This research concludes that the higher the level of customer
interaction with the company and the higher the qualifications of customer requests, the more innovative
the products produced by these companies will be.
5. Conclusion
The higher the quality of customer relationships, the higher the marketing performance. The results of
testing hypothesis 5 are not proven, meaning that increasing the quality of customer relationships does
not significantly impact marketing performance. However, the effect is positive, meaning that
increasing the quality of customer relationships is still followed by increasing marketing performance.
5.1. Limitation
No study covers all aspects of the research problem. The author/s should discuss the limitations or
gaps of this study.
5.2. Suggestion
Provide suggestions based on the findings and limitations of this study.
Acknowledgements
The authors would like to express their gratitude to everyone who participated in this piece of research.
Institutional leadership in the facilitation of research assistance for the advancement of health research
for the benefit of the general public.
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... In Musah and Adutwumwaa's (2021) theory, a person who believes on the other side will be willing to depend on the other party within a certain risk limit. This is in accordance with the results of research by Suherna and Nasiatin (2023) entitled The Influence of Service Quality on Customer Trust and Loyalty Mediated by Customer Satisfaction. Quality of service affects trust because the quality of service provided by Beauty Clinic Inc. to customers is generally good enough to give rise to trust in the face of each customer. ...
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