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Turkish Journal of Physiotherapy and Rehabilitation; 32(3) ISSN 2651-4451 | e-ISSN 2651-446X www.turkjphysiotherrehabil.org 13243 Consumer Behavior, Marketing Strategy, Marketing Communications On Operation Performance Of The Direct Selling Business In Thailand Mukda Phiwkham , Natnaporn Aeknarajindawat Suan Sunandha Rajabhat University, Thailand. [email protected] , [email protected] Abstract The purpose of the current study is to examine the role of marketing communication, marketing strategy and consumer behavior in operational performance. Direct selling businesses in Thailand are considered for the current study. Consequently, the effect of marketing communication, marketing strategy and consumer behavior was examined on operational performance to achieve the study objective. For the data collection from the employees of direct selling businesses, a questionnaire was designed, and data were collected through 5-point Likert scale. While doing survey, 450 questionnaires were used. Therefore, 450 questionnaires were distributed among the employees of direct selling businesses in Thailand. After the data analysis though statistical software, the current study proved that marketing communication, marketing strategy and consumer behavior has positive role to enhance operational performance. Marketing communication help to promote marketing strategy which lead to the operational performance. Furthermore, consumer behavior leads to the marketing strategy which further increases the operational performance of direct selling businesses in Thailand. It is also proved that marketing communication improve the consumer behavior towards direct selling businesses. Keywords. Direct selling businesses, marketing communication, marketing strategy, consumer behavior. 1. Introduction Operational performance has become broadly acknowledged as a serious success factor for business organizations across numerous industries. It is best explained as the level at which various business units in an organization work together to attain essential business objective.It is proved by several studies in the literature that operational performance is key to the success of companies (Naseer, Khawaja, Qazi, Syed, & Shamim, 2021). The smooth process of operational performance among business organizations has the ability to enhance the overall business performance. That is the reason most of the business organizations always try to improve the operational performance.
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Page 1: Consumer Behavior, Marketing Strategy, Marketing ...

Turkish Journal of Physiotherapy and Rehabilitation; 32(3)

ISSN 2651-4451 | e-ISSN 2651-446X

www.turkjphysiotherrehabil.org 13243

Consumer Behavior, Marketing Strategy, Marketing Communications On

Operation Performance Of The Direct Selling Business In Thailand

Mukda Phiwkham , Natnaporn Aeknarajindawat

Suan Sunandha Rajabhat University, Thailand.

[email protected], [email protected]

Abstract

The purpose of the current study is to examine the role of marketing communication, marketing

strategy and consumer behavior in operational performance. Direct selling businesses in

Thailand are considered for the current study. Consequently, the effect of marketing

communication, marketing strategy and consumer behavior was examined on operational

performance to achieve the study objective. For the data collection from the employees of direct

selling businesses, a questionnaire was designed, and data were collected through 5-point Likert

scale. While doing survey, 450 questionnaires were used. Therefore, 450 questionnaires were

distributed among the employees of direct selling businesses in Thailand. After the data analysis

though statistical software, the current study proved that marketing communication, marketing

strategy and consumer behavior has positive role to enhance operational performance. Marketing

communication help to promote marketing strategy which lead to the operational performance.

Furthermore, consumer behavior leads to the marketing strategy which further increases the

operational performance of direct selling businesses in Thailand. It is also proved that marketing

communication improve the consumer behavior towards direct selling businesses.

Keywords. Direct selling businesses, marketing communication, marketing strategy, consumer

behavior.

1. Introduction

Operational performance has become broadly acknowledged as a serious success factor for

business organizations across numerous industries. It is best explained as the level at which

various business units in an organization work together to attain essential business objective.It is

proved by several studies in the literature that operational performance is key to the success of

companies (Naseer, Khawaja, Qazi, Syed, & Shamim, 2021). The smooth process of operational

performance among business organizations has the ability to enhance the overall business

performance. That is the reason most of the business organizations always try to improve the

operational performance.

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Along with the other business activities, operational performance is also important for the direct

selling businesses. Majorly, direct selling involve person to person selling which is also

important role in overall business industry. Generally, it involves single level marketing and

multi-level marketing. According to the literature, both the single level marketing and multi-level

marketing has important role in business (Keong & Dastane, 2019), especially, it has important

role in success of business activities. Both types of direct selling are working among the business

companies which has positive role in business performance.

However, in Thailand, direct selling business activities are struggling due to several issues.

Different issues related to the direct selling business has negative role in overall performance.

Especially, the direct selling business activities in Thailand are facing the problem of operational

performance. As the operational performance in direct selling is important, therefore, it require

significant strategies to promote operational performance which may have positive effect on

overall business performance. Multi-level direct selling in Thailand (Liman, Aliyu, & Halliru,

2020) is working on various strategies to improve the performance, however, the operational

performance is not at satisfactory level in direct selling businesses. Along with the other

countries, direct marketing is also common in Thailand (Galasintu, Supanit, & Chaiittivej, 2018)

which has influence on operational performance. On the other hand, the current study proposed

that; marketing communication is important to promote operational performance. Literature also

supported that marketing communication has central position to promote performance of

business practices. Therefore, in direct business selling, the role of marketing communication is

also important which may increase operational performance. According to the current study,

marketing communication has relationship with marketing strategy. Marketing communication

lead to the marketing strategy which can influence the operational performance. In addition to

marketing communication, consumer behavior also playing positive role to promote performance

(Kim, Lee, & Han, 2020). Similar with marketing communication, consumer behavior also has

important role to promote marketing strategy which has influence on operational performance.

Therefore, the current study proposed that; both marketing communication and consumer

behavior can enhance the operational performance of direct selling businesses in Thailand.

Finally, the purpose of this study is to examine the role of marketing communication, marketing

strategy and consumer behavior in operational performance of direct selling businesses in

Thailand. Thus, the effect of marketing communication, marketing strategy and consumer

behavior is examined on operational performance to achieve the study objective. Furthermore,

this study used marketing strategy as mediating variable between marketing communication and

operational performance. The mediating effect of marketing strategy is also examined between

consumer behavior and operational performance. In this direction, the current study has vital

contribution to the literature of direct selling businesses in Thailand.

2. Literature Review

Direct selling contains two key business models. The first model is single-level marketing. In

this model a direct seller generate money through buying various products from a parent

organization and, selling the products directly to different customers. The second model of direct

selling is multi-level marketing. Multi-level marketing is also called person to person marketing.

Another name of multi-level marketing is called network marketing. In this direct selling model,

the direct seller may earn money by using direct sales to different customers as well as by

sponsoring new direct sellers along with the commission earning from their efforts. Along with

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the other business activities, the direct selling business is also most important and growing

significantly (Zhang, Li, & Ma, 2021). Two discussed models of direct selling are widely used

models having important contribution to the business activities. The direct selling methods has

major importance for businesses along with the other methods. Most of the business activities try

to enhance direct selling methods, therefore, businesses are depending on the direct selling

methods which has central importance to enhance the business performance. The importance of

direct selling methods is already highlighted among the previous studies (Chiou, Su, Hsieh, &

Tien, 2017).

The operational performance of direct selling businesses is most important to get success. Better

operational performance of direct selling business lead to the higher performance. There are

several factors effecting operational performance. For instance, marketing communication has

key importance on operational performance. Marketing is the central role in the performance of

business activities; therefore, the role of marketing communication is important to highlight in

direct selling businesses. Along with marketing communication, the role of consumer behavior is

also important. Previous studies shows that consumer behavior has important relationship with

business performance (Agustin & Handayani br Tarigan, 2021). Consumer behavior is one of the

important factors having influence on the performance of business activities. Generally, it has

influence on strategy making of businesses. Most of the businesses make strategies in relation to

the consumer behavior. Similarly, marketing strategy is also based on the marketing

communication. Both has central role in strategy making which lead to the operational

performance of businesses. Thus, the relationship between marketing communication, consumer

behavior and marketing strategy has vital importance for direct selling businesses. Theoretical

framework in Figure 1 shows the relationship between marketing communication, consumer

behavior, marketing strategy and operational performance.

Figure 1. Framework of the study showing the relationship between marketing communication,

consumer behavior, marketing strategy and operational performance

2.1 Marketing Communication and Consumer Behavior

There is an important connection between marketing communication and consumer behavior. To

promote the business performance, this relationship can play vital role. Marketing

communication system is based on different marketing channels which has influence on the

overall performance of marketing department. It is also based on various tools for marketing or

the combination of marketing tools. Marketing communication channels concentrates on any

way a business communicates a message to its desired market, or the market in general. The

availability of strong marketing communication network has vial role for the business (Duffett,

Petroșanu, Negricea, & Edu, 2019). On the other hand, consumer behavior is the study of

different individuals, various groups, or business organizations as well as all the actions related

with the purchase, and disposal of different goods along with the services, and how the different

nature of consumer's emotions, attitudes and likings influence buying behavior.

Marketing communication influence the consumer behavior. Various marketing practices

increases the awareness among the people related to the specific products of the company. Most

of the time, customers do not have idea about the features of the company, however, better

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marketing communication system enhances the knowledge of the customers towards the features

of a specific product which lead to the change in the behavior of consumer. Therefore, marketing

communication can alter the consumer behavior in favor of the business organization to buy the

specific product or services (Septina, Danil, & Satyarini, 2019). Therefore, the availability of

better marketing communication system among the organizations can promote consumer

behavior of the consumers and positive consumer behavior is always important for the business

activities. As it is hilighted by Ismoyowati (2015), consumer behavior has key importance for

business. Positive consumer behavior leads to the positive effect on business performance.

However, negative consumer behavior towards the products of the company shows negative

effect on performance. Finally, it is evident that marketing communication is an important factor

which has important role to alter the consumer behavior in favor of the company. Hence, it is

hypothesized that;

Hypothesis 1. Marketing communication has relationship with consumer behavior.

2.2 Consumer Behavior, Marketing Strategy and Operational Performance

There is an important connection between consumer behavior, marketing strategy and

operational performance of the direct selling businesses. Consumer behavior is linked with

marketing strategy (Asiegbu, Powei, & Iruka, 2012)which has influence on operational

performance. Marketing strategy is a comprehensive plan to conduct marketing activities.

Marketing strategy is a procedure that can permit a business organization to focus its limited

resources on the highest opportunities to enhance sales and attain a sustainable competitive

advantage in the given market. It is highlighted in the previous investigations that marketing

strategy has important relationship with the consumer (Haudi & Cahyono, 2020). It can be

described as consumer behavior shape the marketing strategy. Business organizations review the

behavior of the consumer and plan the marketing strategies. If the consumer has negative

behavior towards the products of the company, the company will make the plan accordingly to

alter the behavior of the consumer. On the other hand, if the consumer has positive behavior, the

company will try to maintain or enhance the positive behavior. Therefore, this relationship

between consumer behavior and marketing strategy has key importance to enhance operational

performance.According to the current study, consumer behavior has influence on marketing

strategy and marketing strategy has influence on operational performance.

Hypothesis 2. Consumer behavior has relationship with marketing strategy.

2.3 Marketing Communication, Marketing Strategy and Operational Performance

Marketing communication is an important element of business organizations which has influence

on marketing strategy and operational performance. Marketing activities always a central

position among business activities to capture the customers for the achievement of business

objectives. There is a strong association between marketing communication and marketing

strategy (Othman, Harun, De Almeida, & Sadq, 2020). Better marketing communication lead to

the improved marketing strategy which has influence on operational performance. As highlighted

by Falahat, Ramayah, Soto-Acosta, and Lee (2020), it has relationship with performance.

Therefore, operational performance of direct selling businesses is influenced by the better

marketing strategy. Good marketing strategy lead to higher operational performance; however,

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low level marketing strategy or marketing communications activities lead to the lower

operational performance.

Hypothesis 3. Marketing communication has relationship with marketing strategy.

Hypothesis 4. Marketing communication has relationship with operational performance.

Additionally, marketing strategy is playing the mediating role between marketing

communication and operational performance. Literature shows a significant relationship between

marketing communication and marketing strategy, marketing communication and operational

performance and, finally, marketing strategy and operational performance. Similarly, a

significant relationship is highlighted in literature between consumer behavior and marketing

strategy. According to Baron and Kenny (1986), this situation is supportive to use marketing

strategy as mediating variable between marketing communication and operational performance,

and between consumer behavior and operational performance. Hence, it is hypothesized that;

Hypothesis 5. Marketing strategy has relationship with operational performance.

Hypothesis 6. Marketing strategy mediates the relationship between marketing communication

and operational performance.

Hypothesis 7. Marketing strategy mediates the relationship between consumer behavior and

operational performance.

3. Research Methodology

The nature of variables in the current study is based on primary data. All the variables; marketing

communication, marketing strategy, consumer behavior and operational performance are

measured based on primary data. As the previous studies are also measured these variables by

using primary data(Zatwarnicka-Madura, Siemieniako, Glińska, & Sazonenka, 2019). Thus, by

following the literature, this study is grounded on cross-sectional research design. Quantitative

research approach is used with the help of questionnaire survey. Furthermore, this study selected

a cross-sectional research design because the nature of the study is supported cross-sectional

research design rather than longitudinal research design.

Sample size of the study is 600 which is selected examining the already published studies in the

literature. This sample size is appropriate to collect data because previous studies also used the

similar sample size. Hence, these questionnaires were distributed among respondents. Population

of the study is grounded on the direct selling businesses in Thailand. Therefore, employees of

direct selling businesses in Thailand was the respondents of the study. This study used email

survey for data collection. Furthermore, this study preferred to use simple random sampling to

collect data. First of all, the email addresses of employees were gathered, and questionnaires

were distributed through email. The purpose of the study was examined clearly in the email.

From total 600 distributed questionnaires, 170 valid responses were returned which were used

for data analysis. Data were collected in relation to the profile of respondents and related to the

key study variables. First section of the study was based on respondent’s profile and second

section was based on the scale items related to the marketing communication, marketing

strategy, consumer behavior and operational performance.

4. Data Analysis

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Initial data screening was carried out in this study before data analysis. Initial data screening was

carried out to check the errors in the data. All the missing values were selected along with the

outliers in the data. Finally, after initial data screening, data statistics are given in Table 1.

Table 1. Data Statistics

No. Missing Mean Median Min Max

Standard

Deviation

Excess

Kurtosis Skewness

ATE7 1 0 1.832 2 1 5 1.07 1.016 0.913

MC1 2 0 2.217 2 1 5 1.269 0.131 1.107

MC2 3 0 1.883 2 1 5 0.967 0.733 1.109

MC3 4 0 1.825 2 1 5 0.905 0.638 1.044

MC4 5 0 2.162 2 1 5 1.209 0.562 1.177

CB1 6 0 2.13 2 1 5 1.166 0.448 1.084

CB2 7 0 1.883 2 1 5 0.967 2.722 1.588

CB3 8 0 1.896 2 1 5 1.039 1.121 1.262

CB4 9 0 2.071 2 1 5 1.001 1.521 1.23

CB5 10 0 2.052 2 1 5 1.194 0.681 1.239

MS1 11 0 2.019 2 1 5 1.246 0.569 1.245

MS2 12 0 1.857 2 1 5 1.022 1.726 1.397

MS3 13 0 1.981 2 1 5 1.041 0.299 1.015

MS4 14 0 2.24 2 1 5 1.14 -0.063 0.87

OP1 15 0 1.812 2 1 5 0.945 2.694 1.552

OP2 16 0 2.058 2 1 5 1.175 0.843 1.269

OP3 17 0 2.175 2 1 5 1.168 0.45 1.083

OP4 18 0 2.097 2 1 5 1.121 0.555 1.063

OP5 19 0 2.292 2 1 5 1.253 -0.286 0.85

OP6 20 0 2.143 2 1 5 1.198 -0.067 0.958

Note: MC = Marketing Communication; MS = Marketing Strategy; CB = Consumer Behavior;

OP = Operational Performance

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Note: MC = Marketing Communication; MS = Marketing Strategy; CB = Consumer Behavior;

OP = Operational Performance

Figure 2. Measurement Model

According to previous studies (J. Hair, Hollingsworth, Randolph, & Chong, 2017; J. F. Hair,

2010; J. F. Hair, Sarstedt, Pieper, & Ringle, 2012; Hameed, Basheer, Iqbal, Anwar, & Ahmad,

2018), before hypotheses testing, factor loadings should be above 0.5, composite reliability (CR)

should be above 0.7 and average variances extracted (AVE) should be above 0.5. AVE above 0.5

confirms the convergent validity. Table 2 and Figure 2 shows that all the factor loadings are

above minimum level.

Table 2. Factor Loadings

Consumer

Behavior

Marketing

Communication

Marketing

Strategy

Operational

Performance

CB1 0.809

CB2 0.837

CB3 0.784

CB4 0.762

CB5 0.819

MC1

0.826

MC2

0.734

MC3

0.747

MC4

0.8

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MS1

0.8

MS2

0.769

MS3

0.758

MS4

0.808

OP1

0.696

OP2

0.602

OP3

0.741

OP4

0.782

OP5

0.726

OP6

0.737

Note: MC = Marketing Communication; MS = Marketing Strategy; CB = Consumer Behavior;

OP = Operational Performance

Table 3 shows that all the values for CR is above 0.7 for marketing communication, consumer

behavior, marketing strategy and operational performance. Furthermore, AVE is above 0.5 for

marketing communication, consumer behavior, marketing strategy and operational performance.

Finally, discriminant validity is given in Table 4 through HTMT ratio.

Table 3. Reliability and Convergent Validity

Alpha rho_A CR AVE

Consumer Behavior 0.862 0.863 0.9 0.644

Marketing Communication 0.781 0.784 0.859 0.605

Marketing Strategy 0.791 0.793 0.864 0.614

Operational Performance 0.81 0.815 0.863 0.513

Table 4. HTMT

Consumer

Behavior

Marketing

Communication

Marketing

Strategy

Operational

Performance

Consumer Behavior

Marketing

Communication 0.965

Marketing Strategy 0.727 0.777

Operational Performance 0.859 0.869 0.89

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Note: MC = Marketing Communication; MS = Marketing Strategy; CB = Consumer Behavior;

OP = Operational Performance

Figure 3. Structural Model

Hypotheses testing is examined through structural model (Albassami, Hameed, Naveed, &

Moshfegyan, 2019) as shown in Figure 3. Total seven hypotheses were proposed as shown in

Table 5 and Table 6. All the direct hypotheses in Table 5 are supported. Similarly, all the indirect

hypotheses in Table 6 are also supported. As all the hypotheses have t-value above 1.96 along

with the positive beta value.

Table 5. Direct Effect Results

β M SD

T

Statistics P Values

Consumer Behavior -> Marketing Strategy 0.314 0.313 0.125 2.518 0.012

Marketing Communication -> Consumer

Behavior 0.791 0.79 0.051 15.551 0

Marketing Communication -> Marketing

Strategy 0.366 0.371 0.108 3.402 0.001

Marketing Communication -> Operational

Performance 0.405 0.403 0.057 7.076 0

Marketing Strategy -> Operational

Performance 0.483 0.489 0.051 9.434 0

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Table 6. Indirect Effect Results

β M SD

T

Statistics

P

Values

Marketing Communication -> Consumer Behavior ->

Marketing Strategy 0.248 0.244 0.094 2.63 0.009

Consumer Behavior -> Marketing Strategy -> Operational

Performance 0.152 0.156 0.068 2.226 0.026

Marketing Communication -> Consumer Behavior ->

Marketing Strategy -> Operational Performance 0.12 0.121 0.051 2.336 0.02

Marketing Communication -> Marketing Strategy ->

Operational Performance 0.177 0.18 0.049 3.604 0

5. Conclusion

The purpose of the current study was to examine the role of marketing communication,

marketing strategy and consumer behavior in operational performance. Accordingly, the effect of

marketing communication, marketing strategy and consumer behavior is examined on

operational performance. Survey was used for data collection in Thailand from the employees of

direct selling businesses. Results of the study fulfilled the purpose of the study. Total seven

hypotheses were tested to achieve the study objective. The current study proved that marketing

communication, marketing strategy and consumer behavior has positive role to enhance

operational performance. It is found that; marketing communication has positive effect on

marketing strategy and operational performance. According to the results, better marketing

communication system among the direct selling businesses can promote operational

performance. In this direct, marketing performance has central importance to enhance

operational performance. As marketing strategy has positive effect on operational performance.

Marketing communication help to promote marketing strategy which lead to the operational

performance. Additionally, consumer behavior is also contributing to the operational

performance through marketing strategy. Results shows that consumer behavior has positive

effect on marketing strategy which lead to the operational performance. Hence, marketing

communication, marketing strategy and consumer behavior has the ability to promote operational

performance among the direct selling businesses in Thailand.

The relationship examined in the current study has central importance for the literature. Because

the relationship between marketing communication, marketing strategy, consumer behavior and

operational performance is first time examined in the current study. Several previous studies

examined the effect of marketing practices on business performance, however, rarely any study

highlighted the effect of these variables on operational performance of direct selling businesses

in Thailand. Additionally, this study contributed by examining the two indirect effect of

marketing strategy. The first mediation effect of marketing strategy was examined between

marketing communication and operational performance. The second mediation effect of

marketing strategy was examined between consumer behavior and operational performance.

Hence, this study has unique contribution to the literature which has vital practical implications

for the management of direct selling businesses to enhance the operational performance.

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