The 7P Marketing Mix to Strengthen the Madurese Cattle Market (Strategy to Increase the Competitiveness of Livestock Agribusiness in Madura Island)
DOI:
https://doi.org/10.64137/31079423/IJEBMR-V2I3P105Keywords:
Marketing Mix, Madura Cattle, Strategy, AgribusinessAbstract
This study examines the 7P Marketing Mix model using the Partial Least Squares Structural Equation Modeling (PLS-SEM) approach. The outer model evaluation results indicate that all indicators have outer loading values greater than 0.70 and Average Variance Extracted (AVE) values above 0.50, demonstrating that convergent validity has been satisfactorily achieved. Furthermore, the Composite Reliability (CR) values for all constructs exceed 0.70, indicating high internal consistency across all research variables, namely Product, Price, Place, Promotion, People, Process, and Physical Evidence. However, several constructs exhibit Cronbach's Alpha values below 0.70, particularly Price, Place, and Promotion. This condition is still considered acceptable in the context of PLS-SEM, given the limited number of indicators and the conservative nature of Cronbach's Alpha. In testing discriminant validity, the Fornell–Larcker Criterion results show that all constructs meet the required criteria, where the square root of the AVE for each construct is greater than its correlations with other constructs. However, the HTMT (Heterotrait–Monotrait Ratio) results reveal that several inter-construct relationships exceed the recommended thresholds of 0.90 and even 0.95, such as Price–Place, Promotion–People, and Promotion–Process. This finding indicates potential conceptual overlap among these constructs, suggesting that discriminant validity has not yet been fully optimized.
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