Analyzing Marketing Mix Strategies and Personal Factors Influencing BISI Hybrid Maize Seed Purchases: Insights from Agricultural Development in Soppeng District, Indonesia
Abstract
:1. Introduction
2. Materials and Methods
2.1. Location and Time Research
2.2. Data Source and Data Collection
2.3. Data Analysis
- (a)
- Theoretical Model Development
- (b)
- Path Diagram Development
- Direct Effects of Marketing Mix Strategies on Purchase Decision (→)
- Indirect Effects of Marketing Mix Strategies on Personal Factors (→)
- Indirect Effects of Personal Factors on Purchase Decision (→)
L = (1, 2, 3, …, 11)
L = (12, 13)
- Marketing mix model
- 2.
- Personal factor model
k = 1, 2, 3, 4
- 3.
- Purchasing decision model
- Y: Vector of endogenous latent variables;
- X: Matrix of exogenous latent variables;
- λ: Direct relationship of exogenous or endogenous variables to their indicators;
- β: Vector of path coefficients between endogenous variables;
- δ: Measurement error of the exogenous variable indicator;
- ε: Measurement error of the endogenous variable indicator;
- ζ: Measurement error (error) in the structural equation;
- γ: Path coefficient vector of exogenous to endogenous variables.
3. Results
3.1. Respondent Characteristics
3.2. Analysis of Marketing Mix Factor
3.2.1. Product (X1)
3.2.2. Price (X2)
3.2.3. Distribution (X3)
3.2.4. Promotion (X4)
3.2.5. Personal Factors (Y1)
3.2.6. Purchase Decision (Y2)
3.3. The Influence of Marketing Mix Elements on Purchase Decisions
4. Discussion
4.1. Product and Purchase Decision
4.2. Price and Purchase Decision
4.3. Price and Personal Factors
4.4. Promotion and Personal Factors
4.5. Distribution and Purchase Decision
4.6. Personal Factors and Purchase Decisions
4.7. Strategies to Develop Maize Hybrid Seed Marketing
- (1)
- Strengthening Distribution Channels and Infrastructure: Enhancing the accessibility of hybrid maize seeds requires improving distribution networks and infrastructure. Establishing regional seed warehouses through public–private partnerships ensures continuous stock availability [90]. Strengthening agri-retail networks by supporting local input dealers and farmer cooperatives enhances seed availability in key farming areas [91]. However, agro-dealers remain unevenly distributed, primarily concentrated in high-potential agricultural zones [92]. Developing last-mile delivery systems like motorcycle and small-truck deliveries helps reach remote farmers more efficiently. Investing in rural road networks is essential to reducing transportation costs and improving accessibility for suppliers and farmers [93]. Additionally, seed companies require improved capacity in production, business operations, and marketing, while reducing dependence on imported varieties is crucial for farmers and agro-dealers. Upgrading the seed value chain demands technical and financial support alongside a conducive regulatory environment [93].
- (2)
- Reducing Costs and Improving Financial Accessibility: Several studies indicate that access to credit and financial resources significantly influences smallholder farmers’ adoption of hybrid seeds and fertilizers. Studies in Uganda, Kenya, and Malawi show that providing hybrid seeds during high liquidity increases adoption rates [94]. Access to credit and extension services positively affects the use of improved maize varieties and fertilizers [95,96]. However, credit constraints can limit adoption, as access to credit increases adoption among constrained households but does not affect those without constraints [96]. Other factors, including education levels, plot sizes, non-farm income, and proximity to input markets influence adoption rates [97]. Additionally, gender plays a role, with female farmers sometimes exhibiting higher adoption rates [94], while female-headed households often face challenges in fertilizer adoption [97].
- (3)
- Enhancing Farmer Awareness Through Improved Promotion Efforts: Research shows that a lack of awareness and ineffective promotion strategies hinder smallholder farmers in developing countries from adopting hybrid seeds. While demonstration plots and field days are commonly used to promote improved seeds, their effectiveness varies. One study found no significant impact on adoption rates after two seasons of demonstrations [98]. In contrast, another reported a 40% increase in adoption following farmer field days [99]. Adoption is influenced by socio-demographic characteristics, seed cost, yield potential, market access, and social networks [100]. Innovative strategies, such as offering hybrid seeds for purchase during high-liquidity periods, have effectively boosted adoption rates [94]. To enhance hybrid seed adoption, efforts should focus on raising awareness, providing targeted extension services, and addressing context-specific barriers. This underscores the need for tailored context-specific strategies. Additionally, considering gender differences in adoption patterns may lead to more effective promotion strategies [94,100].
- (4)
- Building Trust and Reducing Farmers’ Risk Aversion: Research shows that farmers’ reluctance to adopt hybrid seeds often arises from concerns about product quality and performance. Studies in Uganda indicate that up to 50% of hybrid maize seeds in local markets may be inauthentic, leading to negative returns for farmers [101]. Ensuring access to certified seeds during high-liquidity periods, such as after crop sales, can further enhance adoption [94]. However, brand loyalty plays a crucial role in seed selection, with farmers often favoring well-known, older hybrids over newer varieties [102]. Additionally, price promotions and product performance information have minimal influence on farmers’ choices when their preferred product is available [102].
- (5)
- Strengthening Market Linkages and Stakeholder Collaboration: Efficient seed marketing channels rely on collaboration among various stakeholders in the seed sector. Seed producer cooperatives (SPCs) are vital in enhancing seed availability and access for farmers in Ethiopia [103]). However, challenges such as limited essential seed availability, weak quality inspection, and poor market linkages hinder the development of the seed business [104]. Direct seed marketing programs have shown the potential to increase competition and improve seed distribution to farmers [105]. Addressing seed supply challenges requires strengthening formal and informal seed distribution channels, particularly for food-security crops [90]. Supporting SPCs through policy development, improving seed producers’ institutional and technical capacities, and establishing effective market information systems can contribute to a more efficient seed sector [103,104].
- (6)
- Improving Regulatory and Policy Support: Government policies are vital in promoting hybrid seed adoption and enhancing agricultural productivity. Studies in India, Pakistan, Uganda, and Malawi emphasize the significance of targeted interventions. Input subsidies can lower adoption costs and improve accessibility for smallholder farmers [106,107]. Ensuring seed quality through strict certification and anti-counterfeit measures is crucial, as poor-quality inputs lead to negative returns and discourage adoption [101]. Long-term government investment in irrigation infrastructure, market development, and extension services supports sustainable agricultural practices and mitigates production risks [106]. Education levels, farm size, market access, and social networks influence hybrid seed adoption [107]. Addressing these issues through comprehensive policies can boost hybrid maize adoption, increase yields, and improve farmers’ livelihoods [107].
5. Conclusions
Limitation of the Study
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Acknowledgments
Conflicts of Interest
References
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Year | Harvested Area (ha) | Production (ton) | Productivity (ton/ha) |
---|---|---|---|
2018 | 18,799.70 | 84,759.00 | 4.51 |
2019 | 19,945.30 | 94,837.00 | 4.76 |
2020 | 29,564.69 | 167,271.00 | 4.92 |
2021 | 39,176.30 | 195,504.00 | 4.99 |
2022 | 36,684.10 | 178,341.00 | 4.86 |
Growth (%/year) | 20.14 | 24.09 | 2.52 |
Model | Hypothesis | Statistical Test | Criteria |
---|---|---|---|
Overall Model Fit | H0: The covariance matrix of the sample data is not different from the estimated population covariance matrix. H1: The covariance matrix of the sample data is different from the estimated population covariance matrix. | p, RMSEA, and CFI values | H0 accepted, if: p ≥ 0.05; RMSEA ≤ 0.08 and or CFI ≥ 0.90 |
Personal factors | H0: γ1 = γ2 = γ3 = γ4 = 0: Product, price, distribution, promotion. H1: γ1 > 0: Product influences personal factors. H2: γ2 > 0: Price influences personal factors. H3: γ3 > 0: Distribution influences personal factors. H4: γ4 > 0: Promotion influences personal factors. | t value | It is expected that H0 is rejected, if: t-value ≥ 1.96 |
Purchase decision | H0: γ5 = γ6 = γ7 = γ7 = β = 0: Product, price, distribution, promotion. H1: γ5 > 0: Price influences personal factors on purchase decision. H2: γ6 > 0: Distribution influences personal factors on purchase decision. H3: γ7 > 0: Distribution influences personal factors on purchase decision. H4: γ8 > 0: Promotion influences personal factors on purchase decision. | t value | It is expected that H0 is rejected, if: t-value ≥ 1.96 |
Description | Max | Min | SD | CV |
---|---|---|---|---|
Age (year) | 79 | 20 | 12.74 | 24.22 |
Education (year) | 16 | 4 | 2.99 | 33.01 |
Land (ha) | 2 | 0.2 | 0.37 | 51.93 |
Family Size (person) | 8 | 1 | 1.41 | 37.06 |
Farming experiences (year) | 59 | 2 | 13.51 | 41.28 |
Income (IDR 1000/month) | 10,000 | 2,500 | 1,438 | 28.45 |
Variable | Measurement Items | Outer Loading | Cronbach Alpha | Composite Reliability | EVE |
---|---|---|---|---|---|
Products | X1 .1 (brand) | 0.893 | 0.956 | 0.958 | 0.719 |
X1 .2 (packaging variations) | 0.815 | ||||
X1 .3 (tolerant of HPT) | 0.848 | ||||
X1 .4 (tolerant of seasons) | 0.802 | ||||
X1 .5 (rod strength) | 0.852 | ||||
X1 .6 (productivity) | 0.820 | ||||
X1 .7 (expired) | 0.804 | ||||
X1 .8 (moisture content) | 0.854 | ||||
X1 .9 (input) | 0.920 | ||||
X1 .10 (yield) | 0.864 | ||||
Price | X2 .1 (price level) | 0.860 | 0.855 | 0.856 | 0.777 |
X2 .2 (discount) | 0.854 | ||||
X2 .3 (price variation) | 0.928 | ||||
Distribution | X3 .1 (product availability) | 0.814 | 0.886 | 0.889 | 0.747 |
X3 .2 (sales location) | 0.866 | ||||
X3 .3 (many retailers) | 0.840 | ||||
X3 .4 (convenience of place) | 0.932 | ||||
Promotion | X4 .1 (advert) | 0.842 | 0.802 | 0.813 | 0.715 |
X4 .2 (door price) | 0.862 | ||||
X4 .3 (sales promotion) | 0.832 | ||||
Personal factors | Y1 .1 (farmer interest) | 0.911 | 0.960 | 0.960 | 0.713 |
Y1. 2 (needs) | 0.830 | ||||
Y1. 3 (age) | 0.804 | ||||
Y1. 4 (lifestyle) | 0.852 | ||||
Y1. 5 (perception) | 0.835 | ||||
Y1. 6 (trust) | 0.838 | ||||
Y1. 7 (group preference) | 0.814 | ||||
Y1. 8 (family) | 0.856 | ||||
Y1. 9 (education) | 0.861 | ||||
Y1. 10 (social) | 0.809 | ||||
Y1 11 (economy) | 0.874 | ||||
Purchase decision | Y2. 1 (buy) | 0.940 | 0.867 | 0.867 | 0.883 |
Y2. 2 (repurchase) | 0.939 |
Analyze the Relationship | Path Coefficient | p-Value (<0.05 sig) | 95% Confidence Interval Path Coefficient | |
---|---|---|---|---|
Lower Limit | Upper Limit | |||
Distribution -> Purchase decision | 0.500 | 0.048 * | −0.018 | 0.953 |
Distribution -> Personal factors | −0.012 | 0.744 ns | −0.079 | 0.059 |
Price -> Purchase decision | 0.708 | 0.011 ** | 0.173 | 1.250 |
Price -> Personal factors | 0.285 | 0.000 ** | 0.237 | 0.331 |
Product -> Purchase decision | 1.638 | 0.003 ** | 0.464 | 2.650 |
Product -> Personal factors | 0.872 | 0.000 ** | 0.745 | 0.984 |
Promotion -> Purchase decision | 0.181 | 0.516 ns | −0.323 | 0.750 |
Promotion -> Personal factors | −0.140 | 0.001 ** | −0.219 | −0.056 |
Personal factors -> Purchase decision | −2.102 | 0.004 * | −3.501 | −0.694 |
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Rustam, S.; Darma, R.; Jamil, M.H.; Tenriawaru, A.N.; Fudjaja, L.; Akzar, R.; Nawi, N.M.; Bakheet Ali, H.N. Analyzing Marketing Mix Strategies and Personal Factors Influencing BISI Hybrid Maize Seed Purchases: Insights from Agricultural Development in Soppeng District, Indonesia. Sustainability 2025, 17, 2800. https://doi.org/10.3390/su17072800
Rustam S, Darma R, Jamil MH, Tenriawaru AN, Fudjaja L, Akzar R, Nawi NM, Bakheet Ali HN. Analyzing Marketing Mix Strategies and Personal Factors Influencing BISI Hybrid Maize Seed Purchases: Insights from Agricultural Development in Soppeng District, Indonesia. Sustainability. 2025; 17(7):2800. https://doi.org/10.3390/su17072800
Chicago/Turabian StyleRustam, Sulfiana, Rahim Darma, Muhammad Hatta Jamil, A. Nixia Tenriawaru, Letty Fudjaja, Rida Akzar, Nolila Mohd Nawi, and Hamed Noralla Bakheet Ali. 2025. "Analyzing Marketing Mix Strategies and Personal Factors Influencing BISI Hybrid Maize Seed Purchases: Insights from Agricultural Development in Soppeng District, Indonesia" Sustainability 17, no. 7: 2800. https://doi.org/10.3390/su17072800
APA StyleRustam, S., Darma, R., Jamil, M. H., Tenriawaru, A. N., Fudjaja, L., Akzar, R., Nawi, N. M., & Bakheet Ali, H. N. (2025). Analyzing Marketing Mix Strategies and Personal Factors Influencing BISI Hybrid Maize Seed Purchases: Insights from Agricultural Development in Soppeng District, Indonesia. Sustainability, 17(7), 2800. https://doi.org/10.3390/su17072800