RELATIONSHIP OF 7P MARKETING MIX AND CONSUMERS’ LOYALTY IN TRADITIONAL MARKETS

The existence of traditional market as the center of economic activities in Indonesian society has begun to be displaced by modern market. Improvement in service quality is important in increasing consumers’ loyalty in order to retain them. The purposes of this research are: 1) to know the level of 7P’s marketing mix in traditional market; 2) to know the level of traditional market consumer’s loyalty and 3) to determine the relationship between marketing mix implementation with consumer’s loyalty. There were 180 traditional market consumers selected by incidental sampling method from 8 traditional markets in Indonesia. Checklists and Likert scale questionnaires were used as tools. Descriptive method was used to analyze data. The result shows that level of marketing mix implementation is high with an average value of 74.07%. The marketing mix elements in order to arrange from the highest to the lowest in level of implementation are respectively those termed People, Process, Physical Evidence, Price, Place, Product, and Promotion. The People element is the highest. This shows that traders’ friendliness, alacrity, and honesty are still the hallmarks of traditional markets. The Promotion element is the lowest because most of the merchants do not implement proper promotion. The average of consumers’ loyalty level in traditional markets is 77.61%, which is considered high. The 7P’s marketing mix, except for the Product aspect, have positive and signifi cant correlation with consumer loyalty, but it is still relatively weak. The consumers would continue to repurchase in traditional markets and recommend that others also shop there.


INTRODUCTION
The traditional market has a strategic role in Indonesia. It is a source of livelihood for more than 13 million traders and 9 million street vendors. The traditional market is the main place for selling such products as those of agriculture, fishery, handicraft, and home industry.
The traditional market provides daily necessities like vegetables, fruits, meat, fi sh, eggs, clothing, household appliances, and so on (Pramono et al., 2011).
However, the existence of the traditional market as most people's economic center in Indonesian society has begun to be displaced by the modern market. Nielsen (2015) presented study results indicating that modern markets in Indonesia including convenience stores, minimarkets, supermarkets, and hypermarkets, grows as much as 31.4% per year while traditional markets decrease as much as 8% per year. It has occurred not only in Indonesia but also in Asia generally. Nielsen (2015) recorded that traditional markets in 1999 has dominated Asia's trade of 73%. And then, in 2012, the domination fell to 56%, with the condition where they were being displaced by modern markets.
It is predicted that in 2020 the contribution of modern markets in Asia would be more dominant, being as much as 57%, while traditional markets would contribute as much as only 43%. Suryadarma et al. (2010) Kotler and Keller (2009) defi ne the marketing mix as a combination of market activities for certain goods or services over a given period and in a particular market. According to Agic et al., (2016), marketing strategy is related to the creation of a marketing mix which enables a business to achieve its objectives in the targeted market. As consumers' behavior changes, the marketing mix is not only concerned with 4P but also developed into 7P (Harrington et al., 2017) which are mentioned as follows: 1. Product is a marketing effort related to everything offered to meet consumer needs (Kotler and Keller, 2009).
Product mix consists of product type, quality, design, completeness, brand name, packaging, size, product service, warranty and replacement (Kukanja et al., 2016).
2. Price is the marketing mix element of how much money consumers spend to buy the product to fulfi l their needs and desires. Tjiptono and Chandra (2005) mentioned that at a certain price level, if the perceived benefi ts of consumers increases, then its value will increase as well (Kotler and Keller, 2009 (Marques et al., 2014) 5. People element could be defined as the role of humans in the delivery of goods or services that can affect consumer perceptions (Kukanja et al., 2016). According to Kushwaha and Agrawal (2015), the customer-oriented Successful marketers are those who maintain not only their company profi ts but also their consumers and consumers' loyalty (Lamberti and Noci, 2010). Loyalty is defi ned as a deeply held commitment to buy or to support a preferred product or service in the future even if the infl uence of the marketing situation and effort has the potential of causing consumers to shift their preference (Kotler and Keller, 2009 (Kasiri et al., 2017). When consumers are satisfi ed, they would not only repurchase products of the company, but also recommend the good things about the company and its products to others (Orel & Kara, 2014).
Consumers are the key to the existence of traditional markets. Improving services is important as an effort to increase consumers' loyalty in order to retain them. It could be done by optimizing the management of marketing-mix elements (Tjiptono and Chandra, 2005). In relation 3) Matching the value resulted from the level of marketing mix implementation and consumers' loyalty with the criteria that used. It can be seen in Table 1.  (Selang, 2013). The packaging used by merchant in the markets is in the form of plastic bags. It is considered practical and suffi ciently adequate. In general, the average level of the Price element implementation was high. One characteristic of the traditional market is the price of the product which is negotiable while in the modern market the price is determined to be fi xed. Consumers in traditional markets are accustomed to bargaining prices in the hope of getting a price lower than that offered (Singh, 2015).
The products that are usually with negotiable prices are clothes, bags, shoes, fruit, meat, and vegetables. However, there are some merchants that sell products at fi xed prices.
As the second indicator of the Price element,   Consumers' loyalty is an in-depth customers' commitment to buying or re-favoring a preferred product in the future as shown by repurchasing it and recommending that others shop at traditional markets (Srivastava and Kaul, 2016

CONCLUSION AND SUGGESTION
The implementation of the marketing mix in traditional markets according to consumers is considered as high (74.07%.) The highest level of the marketing mix implementation is the People element.