Abstract
When preparing an effective marketing strategy, a bank must consider its competitors as well as its customers. Establishing a mutual relationship with customers requires a better means of satisfying customer needs than the competitors. Micro, Small, and Medium-sized Enterprises (MSMEs) should always analyze their competitors and develop marketing strategies that effectively give the company a good position compared to the competitors and provide a competitive advantage as strong as possible. This research was conducted using a quantitative method. The design was categorized as causal relationship research. The data were then analyzed using the path analysis. Findings of the research showed that customer satisfaction, service quality, and customer loyalty affected the competitive advantage of Sentra Batik Pamekasan. The effect of customer loyalty on the competitive advantage could be observed from the number of Sentra Batik Pamekasan’s customers who decided not to move to other financial institutions (banks). When the company could give better service quality, the customer loyalty and the competitive advantage among financial institutions would get higher.
Highlights
The summary table showed that customer satisfaction significantly affected competitive advantage by 82.6%
The rest (17.4%) referred to other factors not included in this research. It means that customer satisfaction had a significant positive effect on competitive advantage in the Sentra Batik Pamekasan
The summary table showed that customer satisfaction significantly affected customer loyalty by 61.6%%
Summary
The companies usually do not realize that the plans and activities they are running constitute one of the strategies to compete. Every company might have different strategies from its competitors. Stiff competition undeniably occurs in the batik industry. The competition occurs in a large number of batik and in the efforts to find customers and retain the existing ones. The perceived performance of the company’s product is highly required. Perceived performance is based on the customer’s knowledge, belief, and evaluation of brand, product performance, image, and services. Once the customers perceive those aspects as satisfactory, customer loyalty will be formed, which is indicated by the repeated use of the product for the long term
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