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The development of market oriented batik products based on customer buying intention (industrial center of Batik Sragen Indonesia)

The research aims to produce batik product in accordance with the costumers buying intention which has market oriented and to recognise the correlation model of marketing mix (product, price, promotion, distribution) with buying intention at the Industrial Center of Batik (SIB), Masaran District, Sragen, Indonesia. International Journal of Management (IJM) Volume 11, Issue 3, March 2020, pp. 373–389, Article ID: IJM_11_03_040 Available online at http://www.iaeme.com/ijm/issues.asp?JType=IJM&VTyp

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  1. International Journal of Management (IJM) Volume 11, Issue 3, March 2020, pp. 373–389, Article ID: IJM_11_03_040 Available online at http://www.iaeme.com/ijm/issues.asp?JType=IJM&VType=11&IType=3 Journal Impact Factor (2020): 10.1471 (Calculated by GISI) www.jifactor.com ISSN Print: 0976-6502 and ISSN Online: 0976-6510 © IAEME Publication Scopus Indexed THE DEVELOPMENT OF MARKET ORIENTED BATIK PRODUCTS BASED ON CUSTOMER BUYING INTENTION (INDUSTRIAL CENTER OF BATIK SRAGEN INDONESIA) Adcharina Pratiwi*, Asri Laksmi Riani, M Harisudin, Sarah Rum HP Post Graduate Program, Sebelas Maret University of Surakarta Indonesia *Corresponding Author Email: pratiwiadcharina@gmail.com ABSTRACT The research aims to produce batik product in accordance with the costumers buying intention which has market oriented and to recognise the correlation model of marketing mix (product, price, promotion, distribution) with buying intention at the Industrial Center of Batik (SIB), Masaran District, Sragen, Indonesia. This researchuses exploratory methods and survey methods where two-hundred (200) consumers who understand the problem of batik are being the research samples.The study was conducted from January to August 2019. Data were documented and analyzed using conjoint analysis and SEM analysis. The results showed that the batik products in Sragen Indonesia were very good in quality, the prices were affordable and cheap, the promotions were quite good and the distribution of Sragen batik was quite broad. There is a significant correlation between marketing mix (product, price, promotion and distribution) and market- oriented consumer preferences. It is concluded the product has a correlation of 0.493, price of 0.697, promotion of 0.546 and distribution of 0414 to market-oriented consumer buying intention.Batik products that consumers desire are characterized by: (1) Product variables: (a) fabric made from cotton; (b) feature patterned combination of modern-traditional; (c) washed not fade; (d) fabric size of 115 cm x 240 cm; (e) can last 3-5 years; (f) printed batik; (g) contrast color combinations; (h) brand to order; (i) made by a well-known businessman; (j) good quality and affordable prices; (2) Price variables, including: (a) selling price fromRp. 101,000 up to Rp. 250,000 per piece; (b) cash payment system; (c) giving a discount at the time of purchase; (d) lower prices than similar products sold in the market; (3) Promotional variables, including: (a) advertising on social media / internet and making signboards; (b) sold in stores / boutiques and also uses marketing personnel; (c) actively participate in the event; (d) CSR activities; (e) advertising is widely known by the people of Indonesia; (4) Variable distribution, including: (a) sold at every store in all regencies / cities in Indonesia; (b) timely http://www.iaeme.com/IJM/index.asp 373 editor@iaeme.com
  2. The Development of Market Oriented Batik Products Based on Customer Buying Intention (Industrial Center of Batik Sragen Indonesia) delivery of goods; (c) sales can be through online stores; (d) batik products are sold in stores / outlets outside Sragen City. Keywords: product, batik, buying intention, consumer, market oriented Cite this Article: Adcharina Pratiwi, Asri Laksmi Riani, M Harisudin, Sarah Rum HP, The Development of Market Oriented Batik Products Based on Customer Buying Intention (Industrial Center of Batik Sragen Indonesia), International Journal of Management (IJM), 11 (3), 2020, pp. 373–389. http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=11&IType=3 1. INTRODUCTION Indonesian batik is a historical fact that proves the existence of Indonesian batik until present. Because batik has been a tough foundation for the existence of batik in Indonesia, it is worthy of being recognized as an Indonesian cultural heritage by the United Nations Educational, Scientific and Cultural Organization (UNESCO) in 2009 (Pratiwi, 2019). It makes the Indonesian people very proud and excited. The government issued a regulation on the conduciveness of the development and preservation of national batik in accordance with Permendagri number 53/2009 on the use of batik in government agencies, contributing significantly in opening demand for sustainable batik and domestic batik production. Permendag number 86/2015 concerning imports of textiles, textile products and batik motifs as a form of maintaining the production and marketing of batik in the country. Perpres number 44/2016 concerning to business fields, regulates investment in various business fields, to prevent monopoly capital in small businesses including batik (Pratiwi, 2019). Nowadays, batik entrepreneurs have been connected with all the millennium power. The market which was once limited by distance and time is now expanded indefinitely within the sales of its products (Suranto, 2019). The market that is around batik entrepreneurs who have been considered as their territory, now it belongs together with competitors without distance and time limits, even competitors can bring their products to markets in our region any time. The development of batik businesses requiresto increase efficiency and technological innovation in the creative industries in all sectors, including the components of human-ware, techno-ware, organ-ware and info-ware. Human-ware component is a technology contained in human beings, in the form of knowledge, skills, attitudes and behaviors as well as enthusiasm, so humans create technology to help themselves to work better and be more productive/creative. Techno-ware has the meaning as a technological component contained in the machinery and production equipment used in human life. Organ-ware is interpreted as the perceived role of technology contained in institutional, organizational and management. Organization is to produce processes and synergies to move the wheels of the organization in a management, the cooperation that is built takes place in a more orderly, effective and efficient manner. Info-ware is technology role contained in a documentation, such as: images, diskettes, microfilm, books, and magazines. The existence of documentation, repetition of the creation of technology, of course there is always innovation and there is no plagiarism (Suranto, 2019). The millennium era has provided given capacity that can be utilized independently by every individual including batik entrepreneurs. Right now business actorscanaccess various information which is relevant to their needs, such as: government regulations on batik businesses, capital sources, supply and demand of the batik market, and trends in batik motifs. It is also to take advantage of the power in the network (online), such as: social media to interact with customers and online sales. http://www.iaeme.com/IJM/index.asp 374 editor@iaeme.com
  3. Adcharina Pratiwi, Asri Laksmi Riani, M Harisudin, Sarah Rum HP In Sragen, batik entrepreneursstill experience difficulties in different levels, in terms of: capital, human resource management, technology access, production processes, marketing, promotion, online mastery (network), bank access (Setiawati, 2015; Ministry of Industry and Trade, 2015; Novitasari, 2017). Based on surveys in direct pre-research on batik entrepreneurs in Masaran District area, there are common problems faced by the entrepreneurs: (1) low capital, (2) lack of technology, (3) low market access, (4) tight sales competition, (5) ) weak sales strategy, (6) small number of customers, (7) weak utilization of social media networks, (8) designs or motives that are less recent, (9) the number of middlemen or re-sellers so that prices increase, (10) destinations batik tourism has not run yet. According to Raf (2012), the factors that influence the development of batik small industry creativity are: (1) creative HR variables: motivation, talent/interest, communication, and competence; (2) creative work variables: include work, leadership, and entrepreneurship; (3) organizational context variables, namely: company performance, policies, organizational structure and culture, communication systems; (4) business environment variables, namely: empowerment of external resources, technology, competition, and government regulations; (5) product innovation variables, namely: design, materials, tools, and utilization of batik waste. Arfan et al., (2008) research shows that the factors that influence the development of batik industry creativity are reliable human resources and the role of government. The results of Daryono&Wahyudi's research (2008) show that small and medium industries really need the role and intervention of the government in increasing competitiveness, regulations, or rules that favor the small industry in granting credit, increasing the superiority of batik and the quality of batik products, innovation and price management. The results of Im& Workman's (2004) research indicate that the creativity of new products and sales shows the correlation between market orientation and marketing success. Octavia's (2015) state that factors that influence the success of product sales (promotion, price, location and distribution) and yielded results, Jambi batik products are able to come through the export market. This research is expected to provide a solution to the success of market-oriented batik marketing business, so it is needed: (1) what kind of consumer buying intention of batik products are expected, (2) know the correlation and influence of marketing models (marketing mix) on the preferences of market-oriented batik consumers , sothe correlation of marketing variables can be seen, in order to make the research results become input, reference in marketing development, and standardization of batik making as desired (consumer preferences) for batik products at the Batik Industrial Center (SIB) of Masaran District, Sragen, Indonesia. 2. LITERATURE REVIEW 2.1. The Meaning of Batik Etymologically, batik is a series of words 'mbat' and 'tik', 'mbat' in Javanese means 'blowing' or throwing repeatedly, while 'tik' is derived from the word. So batik means throwing dots repeatedly on the fabric, so that over time the points coincide in forming lines and motifs using canting and wax as materials (Purwodarminto, 1990). Batik is referred to as writing, because the batik technique uses a canting tool that can discharge fluids in the form of nights and is done like people write, in the language of manners the word 'nyerat' is translated as writing or writing and painting or painting. The art of batik is the art of painting, a batik artist has the ability to paint ornaments (motifs). Batik is identified with painting as it applies to written batik. http://www.iaeme.com/IJM/index.asp 375 editor@iaeme.com
  4. The Development of Market Oriented Batik Products Based on Customer Buying Intention (Industrial Center of Batik Sragen Indonesia) In terms of development, batik has begun to be known since the Majapahit era and the period of the spread of Islam, batik worn by the king and his family and followers. By these followers, batik was then taken out of the palace and developed in society today. Based on history, the period of the development of batik can be grouped as follows (Ministry of Industry and Trade, 2015) (a) Period of the Majapahit Kingdom Based on historical development, batik has evolved since the days of Majapahit. Mojokerto was the center of the Majapahit kingdom where batik was known at that time. TulungAgung is a city in East Java which is also recorded in the history of batik. Batik Mojokerto and TulungAgung are heavily influenced by Yogyakarta batik. This happened because when the Dutch colonial army with Prince Diponegoro's troops, a part of the Kyai Mojo army withdrew eastward in the Majan area. Therefore, the characteristic of Kalangbret batik from Mojokerto is almost the same as Yogyakarta batik, which is basically white and the color is light brown and dark blue (Ministry of Industry and Trade, 2015). (b) Period of the Spread of Islam BatoroKatong, a Raden descendant of the Majapahit kingdom, brought Islamic teachings to Ponorogo, East Java. The development of Islam in Ponorogo was a boarding school located in the Tegalsari area which was nurtured by KyaiHasanBasri. Batik at that time was still limited in the palace environment and finally brought batik out of the palace and flourished in Ponorogo. Tegalsari Islamic Boarding School educates students to master fields of study and religion. The old batik condition that can be seen now is the Kauman area, namely KepatihanWetan extending to the villages of Ronowijoyo, Mangunsuman, Kertosari, Setono, Cokromenggalan, Duchy, Nologaten, Bangunsari, Cekok, Banyudono and Ngunut (Ministry of Industry and Trade, 2015). (c) Solo and Yogyakarta Batik Solo is a municipality in the province of Central Java. Solo as another name for Surakarta is included in the Surakarta Residency. Solo has a palace that is Kasunanan and Mangkunegaran so that the Solo batik culture is very closely related to the Keraton culture. Solo is used as a slogan for the development of Central Javanese culture with the symbol "The Spirit of Java" which is a slogan to show deep-rooted determination in preserving Javanese culture. Besides being known for the thickness of Javanese customs, Solo is also known as the batik icon, the Solo batik motif. Solo Batik is more popular with keris batik which has already penetrated overseas market share. Solo Batik is one of the destinations visited by foreign and domestic tourists when visiting the city of Solo Hadiningrat. BatikSolo Tourism production activities are in the Laweyan batik village and Kauman batik village.Kampung Batik Laweyan is a center or center for batik activities, batik activities have become a daily culture for the community and are usually derived from their ancestral heritage. Batik in all forms (motifs) is the identity of the Indonesian people. Making batik is a livelihood for Javanese women, making batik in the Surakarta (Solo) palace is very well known as an exclusive occupation. Solo Batik has characteristics, both in the process of stamp and writing. Dyes used to make batik using natural ingredients, namely soga. Sidomukti Solo batik motifs and Sidoluhur solo batik motifs are examples of the famous Solo written batik patterns. Batik motifs have their own meanings, other meanings, different Solo-style batik motifs are created, with the hope that it can bring good to the wearer(Ministry of Industry and Trade, 2015). http://www.iaeme.com/IJM/index.asp 376 editor@iaeme.com
  5. Adcharina Pratiwi, Asri Laksmi Riani, M Harisudin, Sarah Rum HP 2.2. Market-Oriented Batik According to Anshori (2011), market-oriented products can be defined as organizational behavior that identifies products according to customer needs, competitor behavior disseminates market information throughout the organization and responds with coordination, time, and profit calculation. Andit is also a product with quality designs, suitable for users or consumers, in line needs, price, time and dimensions (Nerver& Slater, 1990), (Putranto, 2003), (Gray et al, 1999). Market orientation indicators include forming the right positioning, maintaining customer loyalty, gaining new market shares, maximizing sales and creating effective business performance (Moertini, 2005), (Fathonah, 2009). The marketing mix is a combination of four variables, including products, price structures, promotional activities, and distribution systems (Hengki, 2014). The product excellence is divided into three, including the superiority of: (a) the product differentiation or diversity, (b) market segmentation through product marketing, (c) product in market acceptance (Kotler, 2005). Indicators of market-oriented product success include (a) sales volume or revenue, (b) customer growth, which is the increase in the number of consumers, (c) profitability, which is a strategy to increase corporate profits (Ferdinand, 2000). 2.3. Batik Based on Consumer Buying Intention For batik entrepreneurs, the presence of products is determined by the quality to always be more creative and dynamic based on the market. Apart from product attributes, the price also influences consumer purchasing decisions. Pricing is one of the decision variables in the marketing mix. In case the price is too expensive, the product availability in the market falls, and consumer buying interest tends to decrease. It also is one of the determinants of product selection that influences purchase interest (Nainggolan and Heryenzus, 2018). Research on the marketing mix is closely related to consumer buying intention. In general, consumers expected variables include improvements to the product, price, promotion and place. Product is related to consumer's desire since it is an attribute that is beneficial in fulfilling needs and satisfies consumers (Bernard, 2009).Prices have a positive and significant effect on consumer buying interest in processed food products (Silaningsihand Utami, 2018), (Dama, 2016), (Meilaniand Simanjuntak, 2012). Promotional variables play a significant role in consumer buying intention from a marketing mix point of view. Promotion influences consumers to like and buy a product. It attracts their attention to the products, apart from providing a good buyer response and boost sales in the short and long term. It helps in facilitating proper information delivery to consumers on the benefits or advantages of a product, and therefore affect consumers’ interest in buying the product (Tjiptono, 2007), (Dama, 2016), (Yahya, 2016). The place is the decision support variable in consumer buying intention based on the marketing mix (Kotler, 2005). Distribution, including the location of product marketing influence consumer buying interest since they want products that can be easily obtained (Tjiptono, 2007). The selection of the right place/location needs attention and several aspects such as access, visibility, traffic, large and maintained parking, expansion, the competitive environment and government regulations needs to be considered. 3. RESEARCH METHODOLOGY This study uses observational analysis using quantitative methods. The case study used is an embedded case study embedded (embeded research) that is a case study that has determined the focus of the study in the form of the main variables to be studied based on the objectives http://www.iaeme.com/IJM/index.asp 377 editor@iaeme.com
  6. The Development of Market Oriented Batik Products Based on Customer Buying Intention (Industrial Center of Batik Sragen Indonesia) and interests of the study, namely product marketing based on market-oriented consumer buying intention. Quantitative studies are conducted to examine consumer buying intention for batik products. Quantitative studies use conjoint analysis with the aim of understanding how respondents develop preferences for a product (batik), and use SEM (Structural Equational Modeling) analysis to analyze the correlation model between marketing mix factors (product, price, promotion, and distribution) and consumer buying intention market-oriented batik (Ghozali, 2011). This research was preceded by exploratory research and continued with a survey. Exploratory research aims to find the attributes and levels that need to be considered by consumers when purchasing batik products. After that, quantitative research is conducted by using the conjoint analysis method and SEM to describe and answer the research problem. Quantitative data is data in the form of numbers obtained through a questionnaire (score) and secondary data in the form of numbers obtained through observation and documentation. According to Ferdinand (2000), it is called as quantitative research because the data are in the form of numbers and the analysis use statistics. The preparation of observation guidelines (closed questionnaire) is conducted by rating scale. The rating scale is made flexiblebecause instruments with rating scales must be able to interpret each number given to the alternative answers on each instrument item. In this study, the rating scale describes the level of consumer attitudes towards each attribute of batik marketing with market orientation, and the score of product variables, price, promotion, distribution, and consumer buying intention. 3.1. Research Design This study uses survey research designthat aims to measure the existing symptoms and help to compare with predetermined criteria. This research also uses cross section studies by studying samples from various strata at the same time with consideration that this design is compatible with the problem and research objectives. 3.2. Sample The researcher is oriented towards conducting factual verification in the field, then the number of consumers who are factual verification results are stated as the study population. Subjects who participated in the sample were selected by using purposive random sampling. There are 200 people as the samples in this study who buy or know the problem of batik. 3.3. Analysis Techniques Data analysis techniques used in this study as follow: (1) descriptive analysis through a questionnaire to explore the sources of respondents, (2) Conjoint Analysis, through a questionnaire to explore the desires (preferences) of consumers to attribute Masaran batik, (3) SEM analysis, through questionnaires to know the correlation between marketing mix variables and consumer buying intention for market-oriented batik products. Conjoint analysis is a multivariate analysis method and began to be developed since 1970. This analysis is used toget a combination or composition of attributes of a new product or service and the oldest one that are most buying intention by consumers. Conjoint analysis has the power to measure consumer buying intention because it is able to represent product designs with attributes that have been combined. In this analysis consumers will be required to make an attribute judgment trade-off. How much the consumer's buying intention for an attribute is considered sufficient to sacrifice other attributes or if the consumer has considered sacrificing an attribute to get another http://www.iaeme.com/IJM/index.asp 378 editor@iaeme.com
  7. Adcharina Pratiwi, Asri Laksmi Riani, M Harisudin, Sarah Rum HP attribute, then which attribute is chosen. The conjoint analysis process provides a quantitative measure of the level of utilityand the relative importanceof an attribute compared to other attributes. Furthermore, these valuescan be used to help in selecting the attributes of a product that will be offered so that it can obtain a product with the most preferred attributes by consumers(Ghozali, 2011).. The next stage, this study uses SEM (Structural Equational Modeling) analysis to analyze the model of the correlation between marketing mix factors (product, price, promotion, and distribution) and market-oriented batik consumer buying intention. It is based on the premise that consumers value products by the number of valuesof each separated attribute. Utility as a value measurein conjoint analysis is subjective judgment of the unique buying intention of each individual (Ghozali, 2011). 4. RESEARCH RESULTS 4.1. Univariat Analysis of Marketing Mix Factors and Consumers Preferences 4.1.1. Product Variable There are 10 numbers of questionnaire items used to measure the product, and each item has 7 alternative answer choices. It is known that the average score of respondents for product instruments is 58.51 where the highest score is 66 and the highest score is 43. Based on the highest score and the lowest score, a score grouping can be made based on good, sufficient, and less categories as follows. the highest score – the lowest score Interval = 3 = (66 - 43) / 3 = 7,67 Research data score can be classified as follows : Less = Score 43 up to 43 + 6,67 = 49,67 = 50 Average = Score 51 up to 50 + 6,67 = 56,67 = 57 Good = Score 58 up to 66 Based on the framework, the respondent score towards the product appraisal can be classified as seen in table-1. Table 1 Distribution of Product Variable Frequency Cumulative Frequency Percent Valid Percent Percent VGood 140 70,0 70,0 70,0 aAverage 26 13,0 13,0 83,0 l Less 34 17,0 17,0 100,0 i dTotal 200 100,0 100,0 Source: Analysis result SPSS 22.0 In table -1, it is known that there were 70% of 200 respondents who rated the quality of Sragen batik products was good, 13% of 200 respondents said that the quality of MasaranSragen batik products was average, and 17% who said the quality of MasaranSragen http://www.iaeme.com/IJM/index.asp 379 editor@iaeme.com
  8. The Development of Market Oriented Batik Products Based on Customer Buying Intention (Industrial Center of Batik Sragen Indonesia) batik products is still less in quality. Based on the data above, it can be concluded that the majority of respondents said the quality of MasaranSragen batik products was good. 4.1.2. Price There are 4 questionnaire items used to measure the price, and each item has 7 alternative answer choices. It is known that the average score of respondents for the price instrument is 24.39. The highest score is 28 and the lowest score is 18. Based on the highest score and the lowest score, it can be made grouping of scores based on expensive, average, and cheap, and the results can be seen in table-2. Table 2 Distribution of Price Variable Frequency Frequency Percent Valid Percent Cumulative Percent Valid Average 23 11,5 11,5 11,5 Expensive 22 11,0 11,0 22,5 Cheap 155 77,5 77,5 100,0 Total 200 100,0 100,0 Source: Analysis result SPSS 22.0 In table-2 it is known thatthere were 77.5% of 200 respondents who considered that the price of MasaranSragen batik was relatively cheap, there were 11.5% of 200 respondents who said that the price of MasaranSragen batik was average, and there were 11% who said that the price of batik Sragen masses are quite expensive. Based on the data above, it can be concluded that the majority of respondents said that the price of MasaranSragen batik was relatively cheap. 4.1.3. Promotion There are 5 numbers of questionnaire items used to measure promotions , and each item had 7 alternative answer choices. It is known that the average score of respondents for promotional instruments is 30.07. The highest score is 35 and the lowest score is 21. Based on the highest score and the lowest score, a score grouping can be made based on large, sufficient, and less categories like the method above, and the results can be seen in table-3. Table 3 Distribution of Promotion Variable Frequency Frequency Percent Valid Percent Cumulative Percent Valid Large 139 69,5 69,5 69,5 Average 59 29,5 29,5 99,0 Less 2 1,0 1,0 100,0 Total 200 100,0 100,0 Source: Analysis result SPSS 22.0 Table 3 shows that69.5% of 200 respondents thought that the promotion of SragenMasaran batik was large, 29.5%of 200 respondentssaid that the promotion of SragenMasaran batik was average, and 1% said that the promotion of batik Sragen problems are less. Based on the data above, it can be concluded that the majority of respondents said that the promotion of SragenMasaran batik was average. 4.1.4. Distribution There are 5 numbers of questionnaire items used to measure the distribution, and each item has 7 alternative answer choices. It is known that the average score of respondents for distribution instruments is 27.71. The highest score is 32 and the lowest score is 20. Based on the highest score and the lowest score, grouping of scores can be made based on large, medium, and less categories, and the results can be seen in Table 4. http://www.iaeme.com/IJM/index.asp 380 editor@iaeme.com
  9. Adcharina Pratiwi, Asri Laksmi Riani, M Harisudin, Sarah Rum HP Table 4 Distribution of Distribution Variable Frequency Frequency Percent Valid Percent Cumulative Percent Valid Less 7 3,5 3,5 3,5 Large 134 67,0 67,0 70,5 Average 59 29,5 29,5 100,0 Total 200 100,0 100,0 Source: Analysis result SPSS 22.0 In table -4, it is known thatthere were 67% of 200 respondents who considered that the distribution of MasaranSragen batik was classified as large, 29.5% of 200 respondents said that the distribution of MasaranSragen batik was classified as average, and 3.5%said that the distribution of batik Sragen problems are less. Based on the data above, it can be concluded that the majority of respondents said that the distribution of MasaranSragen batik was quite large. 4.1.5. Consumer Buying Intention There are 4 numbers of questionnaire items used to measure consumer purchasing power, and each item has 7 alternative answer choices. It is known that the average score of respondents for consumer purchasing power instruments is 22.76. The highest score is 26 and the lowest score is 16. Based on the highest score and the lowest score, the grouping of scores can be made based on high, medium, and low categories, and the results can be seen in table-5. Table 5 Distribution of Purchasing Power Variable Frequency Frequency Percent Valid Percent Cumulative Percent Valid Low 8 4,0 4,0 4,0 Medium 55 27,5 27,5 31,5 High 137 68,5 68,5 100,0 Total 200 100,0 100,0 Source: Analysis result SPSS 22.0 Table -5 shows that of 68.5% of 200 respondents had a high buy for MasaranSragen batik, 27.5% of 200 respondents had a moderate buying intention for the MasaranSragen batik, and 4% had a low buy for the MasaranSragen batik. Based on the data above, it can be concluded that the majority of respondents have a high desire for batik MasaranSragen is quite large. 4.2. Feasibility Test and Normality of Data Each variable in this study should be analyzed used Confirmatory Factor Analysis (CFA). Confirmatory factor analysis is used to test the dimensionality of a construct or variable. Before analyzing structural models, model measurements are usually measured to test the validity and reliability of the construct indicators or latent variables by conducting confirmatory factor analysis (CFA). The data normality test is used to determine whether the sample data is normally distributed or not using the statistical test Z. The Z value is obtained by dividing skewness or kurtosis with its standard error. This value in AMOS is shown by the Critical Ratio (CR) value. The CR value iscompared with the critical value of the Z distribution at α = 5% which is ± 1.96. If the value of CR> critical Z value, then the data is not normal and vice versa if the value of CR
  10. The Development of Market Oriented Batik Products Based on Customer Buying Intention (Industrial Center of Batik Sragen Indonesia) Santoso (2011) added that for SEM models with the number of latent variables (constructs) of is up to five, and each construct is explained by three or more indicators, 100- 150 data sample is considered adequate. Thus, a total sample of 200 data can be accepted as a representative sample in SEM analysis. 4.3. The Significance of the Casuality Relations between Latent Variables To recognizea causal correlation between latent variables is significant or not, it can be seen from the CR value or based on the p-value as shown in table-6. Based on several model tests, it is found that there is a significant correlation model among latent variables as seen in the model show figure-1. Furthermore, to determine the significance of the causality correlationamong latent variables, it can be seen from the CR value or based on the p-value as shown in table-6. Table 6 Value CR dan p-ValueFit Model - Scalar Estimates (Group number 1 - Default model) Maximum Likelihood EstimatesRegression Weights: (Group number 1 - Default model) PROMOTION
  11. Adcharina Pratiwi, Asri Laksmi Riani, M Harisudin, Sarah Rum HP significance level of 0.025 critical Z (1.96) and a significance level of 0.000
  12. The Development of Market Oriented Batik Products Based on Customer Buying Intention (Industrial Center of Batik Sragen Indonesia) maximize sales and create effective business performance. Product superiority is divided into three, namely (a) superiority of product differentiation called as superiority of diversity of a product, (b) superiority of market segmentation is the superiority of marketing a product, (c) superiority of market acceptance is superiority of products accepted by the market (Kotler, 2005). Based on the results of the study, it can be seen from the price variable, consumers want Batik MasaranSragen to have the following criteria: (1) the price is between Rp. 101,000 up to Rp. 250,000 per piece; (2) cash payment system; (3) giving discountswhen purchasing; (4) lower prices than similar products sold in the market. Tjiptono and Chandra (2012) add that the dimensions of market orientation include: (a) Customer orientation is an adequate understanding of the target buyer in order to be able to create superior value for them on an ongoing basis; (b) Competitor orientation is the company understands the short-term advantages and weaknesses as well as the long-term capabilities and strategies of the current main competitors and potential competitors; (c) Coordination among functions is the coordinated use of company resources in order to create superior value for the target customer. Based on the results of the study, it can be seen from the promotion variable that consumers want batik entrepreneur MasaranSragen must: (1) make advertisements on social media/internet, and also make a signboard; (2) be sold in stores/boutiques and also uses marketing personnel; (3) actively follow the events; (4) carry out CSR activities; (5) know that advertise objectives are widely known by the Indonesian society. A market oriented company is a company that makes customers as the center for the company to run its business (customer orientation), so that the company can be continuously customer oriented, at the same time the company must also be oriented to competitors (competitor orientation). Both of these orientations can be implemented well if the company carries out interfunctional coordination well (Nasution, 2004). Based on the results of the study from the distribution, consumers want a batik entrepreneur MasaranSragen must attempt: (1) to make MasaranSragenbatikto be sold in every store in all districts/cities in Indonesia; (2) delivery of goods to the customer's address according to the promised time; (3) MasaranSragen batik products are also sold through online stores; (4) MasaranSragen batik products are sold in stores/outlets outside Sragen. Gray et al. (1999) in Anshori (2011) argues that market orientation can be seen as the implementation of a marketing concept that is sometimes called as a marketing orientation. Market orientation is defined as organizational behavior that identifies consumer needs, competitor behavior, disseminates market information throughout the organization and responds with a coordination, time calculation, and profit calculation. 5.2. The Correlation between Marketing mix factors and MasaranSragen Indonesia Consumer Buying Intention 5.2.1. The Correlation of products to consumer buying intention Products and consumer buying intention have a close correlation. Based on SEM analysis results, it is known that the coefficient of product path analysis with consumer buying intention is 0.493 and the significance is 0.000
  13. Adcharina Pratiwi, Asri Laksmi Riani, M Harisudin, Sarah Rum HP 5.2.2. The Correlation between product, price, and consumer buying intention Products, prices and consumer buying intention have a close correlation. Based on SEM analysis results, it is known that the magnitude of the coefficient of product line analysis of prices is 0.697 and the significance is 0.000
  14. The Development of Market Oriented Batik Products Based on Customer Buying Intention (Industrial Center of Batik Sragen Indonesia) The scheme of marketing performance models can be explained as follows. 5.3.1. Input Marketing input relates to products and prices. Batik products are goods sold to consumers. Therefore, the quality of batik products is an initial attribute that will be related to the price of the product commensurate with the value or the product itself. These two factors will further influence the process factors, namely promotion and distribution. Bernand (2009) said that the product is something that can provide benefits, meet consumer needs and can satisfy consumers. Thus, an entrepreneur is required to always be creative, dynamic, and broad-minded in creating and developing a product. Promotion must be able to persuade the publicto be attracted to a product being promoted and behave according to marketing strategies to increase sales and profits. Promotion will bring and direct consumers to buy products that have been designed by producers to fulfil consumer needs and provide a level of satisfaction to consumers. Through promotional activities, it is able to attract the attention of consumers to buy products, as well as being able to provide strong buyer responses and boost sales in the short term. Promotion plays a role in producing good information to be delivered to consumers about the benefits or benefits of a product, so that it can affect the minds of consumers and will generate interest in buying these products (Tjiptono, 2007). Distribution is a place including various activities carried out by companies so that products can be obtained and available to consumers (Kotler, 2005). 5.3.2. Process The marketing process is related to price and distribution. After the product is made and the promotion is done, then the item will be processed or sold to consumers. This process includes the effort of the entrepreneur / producer to introduce the product and persuade consumers to buy the product at a fixed price, as well as the process of moving or shipping the product from the entrepreneur / producer to the consumer. Meanwhile, pricing is one of the most important decisions in marketing. Price plays a strategic role in marketing. If the price is too expensive, then the product in question will not be affordable by the target market and consumer buying interest tends to decrease over the product because in buying a product the consumer does not only consider its quality, but also thinks of the price feasibility. Price is one of the determinants of product selection that will affect the purchase interest (Sutojo, 2009). 5.3.3. Output Output is related to consumer buying intention. To encourage consumer buying intention, the entrepreneur / producer must be able to convince consumers that the product is attractive and beneficial to consumers. According to Kertajaya (2004), one of the company goalsis to create confidence in consumers to always take actionto buy the product they want. Purchasing decisions are formed because of the learning process and observation of a product that is repeatedly done. The interest and the completeness of information related to the product brand that is observed encourages consumers to buy the product. 5.3.4. Outcome Outcome is related to the impact of increasing consumer buying intention and purchasing decisions on a product. Increased buying interest will increase product sales volume. If it happens, it means the product can be accepted by consumers or able to meet consumer buying intention. This sales volume will further increase the business's existence and increase business profitability. Thus, it means that the company has a good marketing performance. http://www.iaeme.com/IJM/index.asp 386 editor@iaeme.com
  15. Adcharina Pratiwi, Asri Laksmi Riani, M Harisudin, Sarah Rum HP Sales growth is a concept to measure the market achievement of a product. Sales growth is a source of growth in market share. Sales growth is used for all researchers as one of the variables forming the market performance. Market performance is part of marketing performance (Ferdinand, 2000). The external marketing performance indicators are: sales volume, namely sales revenue. Customer / consumer growth is the increase in the number of customers/consumers, and profitability is a strategy to increase corporate profits. The internal indicators of company performance are business independence, business managerial (Ferdinand, 2000). 6. CONCLUSION The results showed that the batik products in Sragen Indonesia were very good in quality, the prices were affordable and cheap, the promotions were quite good and the distribution of Sragen batik was quite broad. There is a significant correlation between marketing mix (product, price, promotion and distribution) and market-oriented consumer buying intention. It is concluded the product has a correlation of 0.493, price of 0.697, promotion of 0.546 and distribution of 0414 to market-oriented consumer buying intention. Batik products that consumers desire are characterized by: (1) Product variables: (a) fabric made from cotton; (b) feature patterned combination of modern-traditional; (c) washed not fade; (d) fabric size of 115 cm x 240 cm; (e) can last 3-5 years; (f) printed batik; (g) contrast color combinations; (h) brand to order; (i) made by a well-known businessman; (j) good quality and affordable prices; (2) Price variables, including: (a) selling price fromRp. 101,000 up to Rp. 250,000 per piece; (b) cash payment system; (c) giving a discount at the time of purchase; (d) lower prices than similar products sold in the market; (3) Promotional variables, including: (a) advertising on social media / internet and making signboards; (b) sold in stores / boutiques and also uses marketing personnel; (c) actively participate in the event; (d) CSR activities; (e) advertising is widely known by the people of Indonesia; (4) Variable distribution, including: (a) sold at every store in all regencies / cities in Indonesia; (b) timely delivery of goods; (c) sales can be through online stores; (d) batik products are sold in stores / outlets outside Sragen City. REFERENCES [1] Anshori, Mohamad Yusak. 2011. Pengaruh Orientasi Pasar, Intelectual Capital, dan Orientasi Pembelajaran terhadap Inovasi Studi Kasus pada Industri Hotel di Jawa Timur, Jurnal Manajemen Bisnis, Vol. 3, No. 3, Desember 2010-Maret 2011: 311-320. [2] Arfan, B., Sriyanto & Amalia. 2008. Analisa Faktor-Faktor Yang Mempengaruhi Pengembangan Kreativitas Industri Kerajinan Batik. JITI Undip, IV (1). [3] Bernard, T Wijaya. 2009. Life Style Marketing. Paradigma Baru Pemasaran Bisnis Jasa. Gramedia Pustaka Utama. Jakarta [4] Dama, Daniel. 2016. Analisis Faktor-Faktor Yang Mempengaruhi Minat Beli Konsumen Dalam Memilih Laptop Acer Di Toko Lestari Komputer Manado, Jurnal Berkala Ilmiah Efisiensi, Volume 16 No. 01 Tahun 2016: 503-514. [5] Daryono & Wahyudi. 2008. Analisis Kompetensi Produk Unggulan Daerah Pada Batik Tulis dan Cap Solo di Dati II Kota Surakarta. Jurnal Ekonomi Pembangunan, 9(2): 184– 197. [6] Fathonah. Siti. Setyawati, Sri Murni., dan Monica Rosiana. 2009. Inovasi Dan Keunggulan Kompetitif Sebagai Variabel Mediasi Pengaruh Orientasi Pasar Terhadap Kinerja Bisnis (Studi Empiris pada Usaha Kecil dan Menengah di Purwokerto). Jurnal Fakultas Ekonomi dan Bisnis Universitas Jenderal Soedirman, 5 (1): 1-18. http://www.iaeme.com/IJM/index.asp 387 editor@iaeme.com
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