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
Turkish Journal of Physiotherapy and Rehabilitation; 32(3)
ISSN 2651-4451 | e-ISSN 2651-446X
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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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ISSN 2651-4451 | e-ISSN 2651-446X
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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.
Turkish Journal of Physiotherapy and Rehabilitation; 32(3)
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