Evaluating the Effectiveness of Marketing Mix Towards Customer Purchase Decision in Local Bakery

Abstract

The purpose of this research is to determine the effectiveness of the marketing mix in influencing customer purchase decision. This study fills the gap in understanding the relationship between the marketing mix and customer purchase decision in a local context. It aims to identify which components of the marketing mix yield the best results in client acquisition by evaluating the effectiveness of the product, price, place, and promotion components. It also provides practical insight into the marketing mix's role in customer purchase decision. Founded on McCarthy's Marketing Mix Theory and on the Howard Sheth model of consumer behavior, a non-proportional quota sampling method was used to select 150 respondents, data were collected via an adapted, validated questionnaire, and analyzed using descriptive statistics and Spearman’s rho correlation. Results indicated that the local bakery effectively executed the 4Ps of the marketing mix. The study highlighted a significant relationship between the marketing mix and customer purchase decision. Notably, the 'place' element was identified as the most effective, likely because customers prefer proximity when purchasing bakery products. Interestingly, promotion was the least effective element; however, it did not negatively impact sales since customers actively seek discounted items. The study concludes that the bakery has substantial potential to increase customer purchase levels and profitability. This can be achieved by continuously introducing innovative, high-quality baked goods, competitive pricing, and implementing targeted promotional activities. These strategies are essential for strengthening customer relationships and boosting sales, ensuring sustained growth for the bakery in the competitive market.