The Effect of Promotion and Product Innovation on Marketing Performance which is Mediated by Service Quality at PT. Adira Finance, East Java
DOI:
https://doi.org/10.71435/742104Keywords:
Promotion, Product Innovation, Service Quality, Marketing PerformanceAbstract
The study analyses the effect of promotion and product innovation on marketing performance which was mediated by service quality at PT. Adira Finance, East Java. In the industry of automotive financing, especially for new cars, a higher competition forces the company to apply effective promotion strategies, present relevant product innovation, and give optimal service quality to increase marketing performance. The study applies quantitatively with a survey method. Furthermore, the population consists of partners of PT. Adira Finance, namely PIC dealer of marketing division and employees of marketing division at PT. Adira Finance, East Java. The data were collected using probability sampling with a questionnaire that was distributed to respondents. In line with that, 146 respondents were taken as samples. Moreover, the data were analysed using Structural Equation Model - Partial Least Squares (SEM-PLS) with descriptive and inferential analysis. As a result, it shows that promotion has an insignificant effect on service quality and marketing performance. Additionally, product innovation has a significant effect on marketing performance. Likewise, service quality has a significant effect on marketing performance. In addition, service quality is proven as a mediating variable in the relationship between promotion strategy and product innovation on marketing performance. The findings give implication on managerial terms that the improvement of marketing performance in the industry of automotive financing for new cars is not only dependent on product innovation, but also mostly influenced by the effectiveness of service quality which is given by either the dealer partners or consumers.
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