Innovation Strategies and Customer Satisfaction among Agri-Business Enterprises in Davao Del Sur
- James R. Linao
- 477-497
- Mar 24, 2025
- Management
Innovation Strategies and Customer Satisfaction among Agri-Business Enterprises in Davao Del Sur
James R. Linao, MBA
Associate Professor, Faculty, Department of Business Administration Education, University of Mindanao-Bansalan College, Bansalan, Davao del Sur, Philippines
DOI: https://dx.doi.org/10.47772/IJRISS.2025.914MG0037
Received: 14 February 2025; Accepted: 18 February 2025; Published: 24 March 2025
ABSTRACT
This study investigates the significant relationship between innovation strategies and customer satisfaction among agri-business enterprises in Davao del Sur. It identifies the evolution of these enterprises, with the majority being established in the 20th century, and explores their ownership structures, employment levels, and the characteristics of their customer base. The research found that 56.25% of agri-businesses were sole proprietorships, while 18.75% were corporations and 25% were cooperatives. Most customers were aged 21-30, predominantly female, with a college-level education and a monthly income between PHP 16,000 and PHP 20,000. The study reveals that innovation strategies such as aggressiveness, analysis, defensiveness, futurity, proactiveness, and riskiness play a significant role in enhancing customer satisfaction. The analysis also shows a positive correlation between innovation strategies and customer satisfaction, indicating that customers’ expectations, including product quality, brand, price, and promotion, are met through effective innovation practices. Based on these findings, the study recommends that agri-business enterprises monitor market trends, prioritize innovation, and engage in action research to continually improve product offerings and customer satisfaction. Further research is encouraged to explore additional factors influencing customer satisfaction within the agri-business sector.
Keywords: Innovation Strategies, Customer Satisfaction, Agri-Business Enterprises, Davao del Sur
THE PROBLEM AND ITS BACKGROUND
Introduction
The growth of agribusiness enterprises has been extensively studied by researchers over the years. Managing an agribusiness in an environment influenced by both internal and external forces presents significant challenges. Entrepreneurs must identify key factors that can either facilitate or hinder business expansion. A competitive agribusiness manager must recognize these factors to ensure sustainable growth.
A study conducted in India emphasized that cottage industries and small and medium enterprises (SMEs) undergo various stages: starting, growing while facing challenges, reaching maturity, and eventually declining (Gupta, Guba, & Krisnaswami, 2013). Entrepreneurs typically focus on innovation, profitability, and expansion, whereas agribusiness owners primarily aim for stable growth, sales, and profits (Kuratko, 2009).
In the Philippines, agribusiness entrepreneurs face challenges such as inadequate research and development, lack of innovation strategies, limited access to technology, difficulties in acquiring capital, insufficient marketing advice, and logistical problems (Aldaba, Yap, & Petri, 2009). Similarly, agribusiness enterprises in Davao del Sur experience traditional workforce compensation methods, indicating a lack of awareness regarding essential factors for business expansion (Malnegro, 2011).
Customer satisfaction plays a crucial role in business success, as organizations need to analyze customer demands effectively (Escrow, 2001). Previous research suggests that satisfaction is influenced by perceived quality and value, which are determined by customer expectations (Oh, 2000). To remain competitive, businesses must adopt customer-focused strategies (Senguo & Kilango, 2015). Lendel and Varmus (2011) highlight the importance of innovation strategies in enhancing a firm’s innovative potential, while Wang, Zhao, and Voss (2016) argue that innovation is a key factor in a company’s success in competitive markets.
Innovation begins with creative ideas that differentiate new products, ultimately increasing customer satisfaction and brand loyalty (Shane & Ulrich, 2004). Pan and Zinkhan (2006) assert that innovation is essential for strategic market positioning, as it enhances customer satisfaction and boosts market share. However, there is a lack of research on the relationship between innovation strategies and customer satisfaction in the local agribusiness sector. Thus, this study aims to examine whether innovation strategies influence customer satisfaction among agribusiness enterprises in Davao del Sur. The findings will benefit key stakeholders and contribute to developing action plans to enhance innovation strategies and customer satisfaction in the local agribusiness industry.
Objectives of the Study
The primary objective of this study is to determine the innovation strategies employed by agribusiness enterprises and their relationship with customer satisfaction in Davao del Sur. Specifically, the study aims to:
- Determine the business profile of agribusiness enterprises in Davao del Sur in terms of:
- Year of Establishment
- Number of Branches
- Number of Employees
- Type of Ownership
- Assess the demographic profile of customers of agribusiness enterprises in Davao del Sur in terms of:
- Age
- Sex
- Civil Status
- Educational Attainment
- Monthly Income
- Evaluate the level of innovation strategies among agribusiness enterprises based on:
- Aggressiveness
- Analysis
- Defensiveness
- Futurity
- Proactiveness
- Riskiness
- Measure the level of customer satisfaction in terms of:
- Product Brand
- Product Price
- Product Promotion
- Product Quality
- Determine the significant differences in innovation strategies among agribusiness enterprises based on the type of ownership.
- Examine the significant relationship between innovation strategies and customer satisfaction among agribusiness enterprises in Davao del Sur.
Significance of the Study
This study is significant as it provides insights into the relationship between innovation strategies and customer satisfaction in the agribusiness sector. The findings will benefit various stakeholders:
- Department of Trade and Industry (DTI): The results may serve as a basis for certifying and endorsing highly recognized products, helping improve innovation strategies and customer satisfaction.
- Business Entrepreneurs: Business firms, leaders, and entrepreneurs may use the findings to develop strategic plans for product introduction, market engagement, and business growth, ultimately increasing profitability.
- Customers: This study may help customers make informed purchasing decisions by identifying products that meet their expectations.
- Future Researchers: The study may serve as a foundation for further research on innovation strategies and customer satisfaction in agribusiness.
Scope and Limitations of the Study
This study examines the relationship between innovation strategies and customer satisfaction among agribusiness enterprises in Davao del Sur. The research is focused on agribusiness enterprises assisted by the Department of Trade and Industry (DTI) and selected customers. The study was conducted in May 2018 and utilized survey questionnaires to collect data.
Definition of Terms
For clarity, the following terms are operationally defined:
- Aggressiveness: The willingness of a business to take actions that improve its market position.
- Agribusiness Enterprises: Businesses that generate most or all of their revenue from agricultural activities, including farming, processing, and product distribution.
- Analysis: A firm’s capacity for knowledge-building and organizational learning.
- Customer Satisfaction: A measure of how well a product meets customer expectations in terms of brand, price, promotion, and quality.
- Davao del Sur: A province in Region XI, Southeastern Mindanao, where the study was conducted.
- Defensiveness: The emphasis on protecting a firm’s core technology and product-market domain.
- Futurity: The extent to which decisions are made with consideration for future occurrences.
- Innovation Strategies: Business approaches that include aggressiveness, analysis, defensiveness, futurity, proactiveness, and riskiness.
- Product Brand: A product’s distinguishing name, design, symbol, or feature.
- Product Price: The financial value exchanged for a product or service.
- Product Promotion: Strategies used to attract customers to purchase or try a product.
- Product Quality: A critical factor influencing consumer judgment about the superiority or excellence of a product.
- Riskiness: A strategic orientation that enhances a firm’s flexibility, creativity, and ability to challenge traditional business rules.
REVIEW OF RELATED LITERATURE
Innovation Strategies
The innovation strategies identified by Karabulut (2015) were instrumental in selecting the indicators used in this study. These indicators include aggressiveness, analysis, defensiveness, futurity, proactiveness, and riskiness. They serve as parameters for measuring the independent variable.
On the other hand, customer satisfaction was also considered in selecting study indicators. These include product brand (Kariuki, 2015), product price (Ahmad, Mehmood, Ahmed, Mustafa, Khan & Yasmeen, 2015), product promotion (Yang, 2009), and product quality (Veyisoğlu, 2010), which serve as parameters for measuring the dependent variable.
An innovation strategy should align with a firm’s vision, mission, goals, and strategies. Firms must invest in research and development, manufacture innovative products, and achieve substantial performance to remain competitive (Karabulut, 2015). Innovation strategy forms the foundation for success in innovation and performance enhancement. It reflects an industry’s commitment to new ideas, novelty, experimentation, and creative processes, ultimately leading to the development of new products, services, and technological advancements (Tamayo-Torres, Ruiz-Moreno & Verdu, 2010). Hence, innovation strategy is critical for the success of manufacturing industries and related firms (Guan, Yam, Tang & Lau, 2009), serving as a guiding tool for a business’s innovation direction (Lendel & Varmus, 2011, 2012). Moreover, innovation strategies can lead to new technologies, products, or processes aimed at minimizing environmental impact and enhancing efficiency in material and energy usage (Mariadoss et al., 2011).
Product innovation plays a crucial role in the survival of small and medium enterprises (Ibidunni & Iyiola, 2014). According to Gunday, Kandah, and Ranch (2011), product innovation is a key element of competitiveness embedded in a firm’s structure, processes, products, operations, and services. As defined by the Oslo Manual (OECD, 2005), a product innovation is the introduction of a significantly improved good or service in terms of its characteristics or intended uses, including enhancements in technical specifications, components, materials, and usability. Ultimately, innovation aims to enhance customer value and experience by making products more relevant, distinctive, and valuable (Kanagal, 2015). Innovation involves creating, developing, and implementing new products, processes, or services to improve efficiency, effectiveness, or competitive advantage (Nemati, Khan & Iftikhar, 2010). Businesses rely on six critical innovation strategies: aggressiveness, analysis, defensiveness, futurity, proactiveness, and riskiness.
Aggressiveness
Aggressiveness is defined as a firm’s willingness to take decisive actions to improve its market position (Lau & Bruton, 2011). It focuses on exploiting and developing resources more rapidly than competitors (Morgan & Strong, 2003) and often involves a strong sales orientation (Lumpkin & Dess, 2001). In highly volatile industries, such as high technology sectors, aggressiveness demands significant investments. It measures a firm’s ability to allocate organizational resources to gain market share and achieve profitability. Aggressive marketing, price skimming, differentiation strategies, and innovation efforts are common aggressive approaches (Ahlander, Cogley, Robbins & Wangler, 2009). Firms exhibiting aggressiveness tend to be combative and highly responsive to competitor actions (Zhou & Wit, 2009).
Analysis
Analysis reflects a firm’s capacity for knowledge building and organizational learning (Morgan & Strong, 2003). It entails efforts to ensure internal consistency in achieving business objectives (Lau & Bruton, 2011). Analytical activities, such as data collection, interpretation, and managerial decision-making, positively impact business performance (Talke, 2007). A firm’s ability to analyze problems, generate solutions, and maintain resource allocation consistency is essential for achieving corporate objectives (Stephen & Mary, 2014).
Defensiveness
Defensiveness emphasizes efficiency, productivity, and cost reduction (Morgan & Strong, 2003). Defensive firms prioritize maintaining their existing market positions rather than pursuing new product or market opportunities. Strong brand image and customer perception serve as defensive strategies (Roberts, 2005). Firms may deter competitors through entry-deterring pricing and predatory pricing (Uslay, 2005; Yannopoulos, 2011).
Futurity
Futurity involves long-term strategic planning to secure a competitive edge (Morgan & Strong, 2003). It ensures businesses are prepared for environmental changes and risk mitigation. Firms that integrate long-term vision into their strategic planning benefit from improved market adaptability and supplier relationships (Stambaugh, Yu & Dubinsky, 2011).
Proactiveness
Proactive firms seek competitive advantage by pioneering new products and adopting innovative techniques (Avci, Madanoglu & Okumus, 2011). They anticipate customer needs, create market trends, and pursue first-mover advantages (Chang, Lin, Wea & Sheu, 2002). Proactive firms respond dynamically to market signals, improving business performance (Morgan & Strong, 2003; Zhou & Wit, 2009).
Riskiness
Riskiness refers to the potential losses or gains from business decisions and influences resource allocation (Morgan & Strong, 2003). High-risk strategies enhance creativity and flexibility but may lead to financial instability (Lau & Bruton, 2011). While risk-taking can yield significant rewards, firms adopting high-risk strategies must balance profitability expectations (Söderbom, 2012).
Customers’ Satisfaction
Customer satisfaction is achieved when a product meets or exceeds consumer expectations (Cheema, 2013). It ensures repurchase and customer loyalty (Usta, Berezina & Cobanoglu, 2014). Customer satisfaction significantly impacts a company’s future income and profitability (Forozia, Zadeh & Gilani, 2013). Retaining satisfied customers is more cost-effective than attracting new ones, making customer satisfaction a critical business priority (Dominici & Guzzo, 2010).
Product Brand
A product brand includes the name, design, or symbol distinguishing it from competitors (American Marketing Association, 2013). Brand perception influences consumer purchasing behavior, making brand identity a key competitive advantage (Da Silva, 2010). Strong brands create lasting customer loyalty and generate higher revenue (Mohammadian & Ronaghi, 2010).
Product Price
Price is a crucial factor in consumer decision-making and reflects perceived product value (Dovaliene & Virvilait, 2008). Fair pricing enhances customer satisfaction and retention (Ko, 2011). Competitive pricing strategies influence consumer purchasing behavior and business sustainability (Hortamani, Ansari & Akbari, 2013).
Product Promotion
Promotional activities attract new customers and increase sales (Ahmad et al., 2015). Effective promotional strategies involve advertising, sales promotions, and public relations (Ferrell & Hartline, 2008). Promotions influence brand perception, customer loyalty, and purchasing decisions.
Product Quality
Product quality determines customer satisfaction and business success (Wai & Low, 2005). High-quality products ensure customer retention, positive word-of-mouth marketing, and brand credibility (Novella, 2012). Investing in quality assurance strengthens a company’s competitive position and market sustainability (Mohajerani & Miremadi, 2012).
Figure 1. The Conceptual Framework Showing the Variables of the Study.
Hypotheses
The null hypothesis was tested at 0.05 level of significance:
- There is no significant difference on the level of innovation strategies and customers’ satisfaction among agri-business enterprises when analyzed by the type of ownership.
- There is no significant relationship between innovation strategies and customers’ satisfaction.
METHODOLOGY
Research Locale
This study was conducted in the province of Davao del Sur, Region XI, Philippines. The province is situated in Southeastern Mindanao and is primarily an agricultural area due to its favorable climate and fertile soil. The research sites were various agri-processing plants located in the municipalities of Bansalan, Digos City, Magsaysay, Matanao, and Sta. Cruz, Davao del Sur, Philippines.
Research Design
A descriptive-correlational research design was employed in this study to describe the level of innovation strategies among agri-business enterprises and customer satisfaction. Furthermore, this design was used to examine the relationship between the dependent and independent variables.
Respondents of the Study
The respondents of this study included sixteen (16) Department of Trade and Industry (DTI)-assisted agri-business enterprises in Davao del Sur. Additionally, two hundred sixty-eight (268) customers from selected agri-business enterprises participated in the study to assess the innovation strategies implemented by these firms.
Table 1. List of Agri-Business Enterprises and Customers of Agri-Business Enterprises in Davao del Sur (May 2019)
Name of Enterprise | Type of Ownership | No. of Customers |
Lao Integrated Farm, Inc. | Corporation | 30 |
Mindanao Baptist Rural Life Center | Corporation | 20 |
St. Benedict Dairy Farm, Inc. | Corporation | 20 |
Magsaysay Organic Farmers Coop. | Cooperative | 21 |
Magsaysay Farmers MPC | Cooperative | 15 |
Balutakay Coffee Farmers Coop. | Cooperative | 10 |
LSV Farm | Sole Proprietorship | 26 |
Isabel Products | Sole Proprietorship | 12 |
AMD Herbal Products | Sole Proprietorship | 26 |
Cherish Marketing | Sole Proprietorship | 25 |
Revindel Farm | Sole Proprietorship | 15 |
Hillcrest Farm | Sole Proprietorship | 8 |
Noriel’s Poultry Farm | Sole Proprietorship | 7 |
Double SS Delicious Chips | Sole Proprietorship | 10 |
MAGSAN Banana Chips | Sole Proprietorship | 13 |
ND Foods Products | Sole Proprietorship | 10 |
Total | 268 |
Sampling Design and Technique
The study employed purposive sampling in selecting agri-business enterprises. The researcher identified respondents from the list provided by the Department of Trade and Industry (DTI), ensuring that selected enterprises aligned with the study’s objectives.
For the customers, convenience sampling was used. This non-probability sampling technique, also known as availability sampling, was chosen because respondents were selected based on their accessibility and willingness to participate (Saunders, Lewis, & Thornhill, 2012).
Research Instrument
The study used survey questionnaires as the primary data collection tool.
Innovation Strategies Questionnaire: Adapted from Karabulut (2015), this instrument measured the level of innovation strategies using six indicators: Aggressiveness, Analysis, Defensiveness, Futurity, Proactiveness, Riskiness
The responses were measured using a Likert scale with the following interpretation:
Range of Means | Descriptive Equivalent | Interpretation |
4.20 – 5.00 | Very High | Always manifested |
3.40 – 4.19 | High | Oftentimes manifested |
2.60 – 3.39 | Moderate | Sometimes manifested |
1.80 – 2.59 | Low | Seldom manifested |
1.00 – 1.79 | Very Low | Not manifested at all |
Customer Satisfaction Questionnaire: Adapted from Kariuki (2015), Ahmad et al. (2015), Yang (2009), and Veyisoğlu (2010), this instrument measured customer satisfaction based on four indicators: Product brand, Product price, Product promotion, Product quality.
Responses were rated using the following Likert scale:
Range of Means | Descriptive Equivalent | Interpretation |
4.20 – 5.00 | Very High | Always manifested |
3.40 – 4.19 | High | Oftentimes manifested |
2.60 – 3.39 | Moderate | Sometimes manifested |
1.80 – 2.59 | Low | Seldom manifested |
1.00 – 1.79 | Very Low | Not manifested at all |
Data Gathered
The data gathered in this study included:
- Innovation strategies adopted by agri-business enterprises in Davao del Sur, measured through the six indicators.
- Customer satisfaction, assessed through the four indicators mentioned above.
Data Gathering Procedure
The researcher followed these steps in collecting data:
- Approval Process: A formal request was submitted to the Chairman to obtain permission to conduct the study.
- Coordination with DTI: The approved letter was presented to the Department of Trade and Industry (DTI) to gain authorization for surveying selected agri-business enterprises.
- Data Collection: The researcher visited the identified agri-business enterprises, located the owners and customers, and administered the questionnaires.
- Data Processing: After gathering the responses, the researcher reviewed, collated, and tabulated the data for statistical analysis.
- Presentation of Findings: The results were systematically presented in tabular format and analyzed based on the research questions.
Statistical Tools
The following statistical tools were used for data analysis:
- Mean: Used to describe the level of innovation strategies and customer satisfaction, addressing sub-problems 1 and 2.
- Pearson Product-Moment Correlation Coefficient (Pearson r): Applied to determine the significance of the relationship between innovation strategies and customer satisfaction.
- Analysis of Variance (ANOVA): Used to analyze the differences in the adaptation of innovation strategies among agri-business enterprises based on ownership type.
Ethical Considerations
To ensure the ethical integrity of the study, the following measures were taken:
- Informed Consent: Participants were informed about the purpose of the study and their rights to confidentiality and voluntary participation.
- Confidentiality: All responses were kept confidential and used solely for research purposes.
- Non-Coercion: Respondents were assured that participation was entirely voluntary, and they had the right to withdraw at any time.
RESULTS AND DISCUSSION
Business Profile of Agri-Business Enterprises in Davao del Sur
Year of Establishment
Table 2 presents the years in which agri-business enterprises in Davao del Sur were established. Of the sixteen agri-business enterprises, 6.75% were established between 1971 and 1980. The earliest agri-business to be established was the Mindanao Baptist Rural Life Center (MBRLC) in 1971, which produced milk from goats and cows. MBRLC was the first in Davao del Sur to practice organic farming, introduced by Baptist missionaries.
In 1990, Magsaysay Farmers Multi-purpose Cooperative (MFMC) was established, also accounting for 6.75%. The cooperative’s main focus was to become a well-known producer of quality rice. Over time, the cooperative formed partnerships with malls and selected stores, expanding beyond the municipality.
Between 1991 and 2000, 12.50% of the agri-business enterprises were established. Hillcrest Poultry Farm started in 1998, and ND Food Processing followed in 1999. Hillcrest Poultry Farm was the first to produce poultry products, specifically eggs and chicken meat.
In the 21st century, between 2001 and 2010, 37.50% of the agri-business enterprises were established. These include LSV Farm (2005), Double S Food Products (2007), Noriel Poultry Farm and Magsaysay Organic Farmers Marketing Cooperative (MOFARMCO) (2008), Lao Integrated Farm, Inc. (2009), and MAGSAN Delicious Chip (2010). LSV Farm is known for its fertilizer products. Double S Food Products and MAGSAN Delicious Chip are known for producing delicious banana chips. Noriel Poultry Farm became the second producer of poultry products in Bansalan, while MOFARMCO is known for its organic rice, including red, black, and brown rice. Lao Integrated Farm, Inc. is a multi-awarded agri-business enterprise that practices organic farming and is widely recognized as a producer of coconut sugar, tea, milk, honey, and vegetables.
The remaining 37.50% of the agri-business enterprises were established between 2011 and 2020. These include St. Benedict Dairy Farm (2011), Balutakay Coffee Farmers Association (2013), the first-class coffee producer, Rivendell Farm (2015), a manufacturer of milk bars, Cherish Marketing (2016), a manufacturer of organically made beauty products, Isabel Food Products (2016), a producer of tea products, and AMD Products (2017), a manufacturer of herbal products.
Number of Branches
Table 2 also shows the number of branches of each agri-business enterprise in Davao del Sur. The survey results indicated that only 6.25% of the enterprises established three (3) branches, with Lao Integrated Farm, Inc. being one of them. The original processing plant is located at Brgy. Eman, Bansalan, Davao del Sur, with the second branch located at Quiros St., Poblacion Dos, Bansalan, and the third branch at G-Mall in Digos City. However, Lao Integrated Farm, Inc.’s products are also available in selected malls and organic posts nationwide. LSV Farm established two (2) branches, both located in Poblacion, Bansalan, Davao del Sur—one on Quiros Street and the other on Viacrusis Street. The remaining 87.50% of the enterprises have maintained their processing activities at their original locations.
Number of Employees
Table 2 also presents the number of employees at each agri-business enterprise in Davao del Sur. About 56.25% of the respondents employed at least 10 persons each, including BACOFA (6), Cherish Marketing (8), AMD Products (5), Isabel Herbal Food Products (6), ND Food Processing (8), Rivendell Farm (9), MAGSAN Delicious Chips (5), Noriel’s Poultry Farm (8), and MBRLC (10). Double S Food Products (18), St. Benedict Dairy Farm (15), Magsaysay Farmers MPC (19), Magsaysay Organic Farmers Marketing Cooperative (13), and Hillcrest Poultry Farm (17) employed between 11-20 people, accounting for 31.25%. The remaining 12.50% of agri-business enterprises (LSV Farm with 42 employees and Lao Integrated Farm, Inc. with 97 employees) employed 40 or more people.
The results further show that establishing agri-business enterprises can contribute to the improvement of the agri-processing industry and help reduce unemployment. These enterprises can also contribute to the economic development of the country. They have already made a significant contribution to the economic prosperity of advanced countries, and their role in the economic development of less developed countries is of vital importance (Frolova, 2014).
Types of Ownership
Three types of ownership were observed during the survey: sole proprietorship, corporation, and cooperative, as shown in Table 2. About 56.25% of the agri-business enterprises are sole proprietorships, 18.75% are corporate entities, and 25.00% are cooperatives. These agri-business enterprises are engaged in agricultural production, marketing, and distribution. Their activities include agrichemicals, breeding, crop production (both farming and contract farming), food production, distribution of agricultural products, farm machinery, food processing, seed supply, as well as marketing and retail sales.
Table 2. Business Profile of Agri-Business Enterprises in Davao del Sur. May 2019.
Details | F | % | |
Year Established | |||
1971-1980 | 1 | 6.25 | |
1981-1990 | 1 | 6.25 | |
1991-2000 | 2 | 12.50 | |
2001-2010 | 6 | 37.50 | |
2011-2020 | 6 | 37.50 | |
No. of Branches | |||
None | |||
1 | 14 | 87.50 | |
2 | 1 | 6.25 | |
3 | 1 | 6.25 | |
No. of Employees | |||
10-Below | 9 | 56.25 | |
11-20 | 5 | 31.25 | |
21-30 | 0 | 0 | |
31-40 | 0 | 0 | |
41-Above | 2 | 12.50 | |
Type of Ownership | |||
Sole Proprietorship | 9 | 56.25 | |
Partnership | 0 | 0 | |
Corporation | 3 | 18.75 | |
Cooperative | 4 | 25.00 |
Demographic Profile of Customers of Agri-business Enterprises in Davao del Sur
Age
The customer profile of agri-business enterprises in Davao del Sur is shown in Table 3. Most of the customers fall within the 21-30 years old age bracket (34%). About 29% are in the 20 years old and below category. The 31-40 years old age group accounts for 17%, while a smaller percentage of customers, 9%, fall within the 41-50 years old bracket. The remaining 7% of customers are in the 60 years old and above category.
Civil Status
Based on the survey, most customers are single, accounting for 58.50%. However, 37.94% are married, and the remaining 3.56% are widows or widowers. Compared to married individuals, single adults tend to experience a stronger sense of economic insecurity. Single individuals are often more eager to discover new products. This suggests that a family’s purchasing power and average expenses are typically higher than those of a person living alone. Married people tend to feel more secure about their financial situation, as their economic burden is shared. Additionally, single individuals are often more generous with themselves, and their demand for dining and entertainment has contributed to the rise of new agri-business enterprises.
Sex
Based on the survey results, most customers of agri-business enterprises are female, accounting for 54.15%, while 45.85% are male. In the context of shopping, females are more likely to be discovery-oriented shoppers who are willing to adjust their initial goals if it leads to a more satisfying outcome.
Educational Attainment
Based on the result of the survey, the highest educational attainment of the are college level with 48.22%, followed by high school level of 35.17%, elementary level 7.41%, 5.14% are obtained vocational level. The ratings of 2.37% among the respondents obtained graduate studies and 1.58% are post- graduate studies. In the context of purchasing agri-business products, college level has clear understanding about the positive result of products. They have the capacity to purchase since they are receiving their income from employment.
Monthly Income
The highest percentage rating 34.39% (87) with the monthly income ranges Php 16,000.00- Php 20,000.00 and 28.85% (73) respondents with monthly ranges Php 10,000.00 – Php 15,000.00. These monthly income of respondent are coming from employment. However, few of the respondents having a monthly income of Php 9,000.00 and below with a rating of 10.67%, and the remaining 8.7% of respondents have a monthly income ranges Php 25,000 and above. Majority of the respondents are receiving only minimum wage pay based on regional employment rate.
Table 3. Demographic Profile of Customers of Agri-Business Enterprises in Davao del Sur. May 2019.
Variables | F | Rf (%) | |
Age | |||
20 Below | 73 | 29% | |
21- 30 | 97 | 34% | |
31 – 40 | 43 | 17% | |
41-50 | 26 | 9% | |
51-60 | 18 | 7% | |
60 – Above | 11 | 4% | |
Civil Status | |||
Married | 111 | 37.94 | |
Single | 148 | 58.5 | |
Widower/Widow | 9 | 3.56 | |
Sex | |||
Male | 131 | 45.85 | |
Female | 137 | 54.15 | |
Highest Educational Attainment | |||
Elementary Level | 19 | 7.51 | |
High School Level | 89 | 35.17 | |
Vocational Level | 13 | 5.14 | |
College Level | 137 | 48.22 | |
Graduate Studies | 6 | 2.37 | |
Post Graduate Studies | 4 | 1.58 |
Level of Innovation Strategies among Agri-Business Enterprises in Davao del Sur
The level of innovation strategies among business enterprise in terms of aggressiveness, analysis, defensiveness, futurity, proactiveness, and riskiness in Davao del Sur is presented below.
Aggressiveness
As disclosed in the Table 4, the level of innovation strategies among business enterprise in terms of aggressiveness as rated by respondents obtained a mean rating of 3.42 which is described as high. It denotes that the innovation strategies among agri- business enterprises in terms of aggressiveness were high and the innovation strategies among business enterprises in terms of aggressiveness are oftentimes manifested. This further implies that business enterprises acknowledged the need to innovate. Business enterprises correspond to aggressiveness as the willingness of the business to take actions to improve the market position to of pricing the product below competitive price and to decrease frequently to increase market share even if there are profit or losses and could sacrifice profits in order to introduce a new product to the market earlier than the competitors.
For that reason, business enterprises is concerned to achieving business unit profitability. This is in line with the statements of several authors (Ahlander et. al., 2009; Zhou and Wit, 2009), who pointed out that business enterprises engage organizational resources to increased market share in the form of aggressive marketing, price skimming, aggressive efforts towards being the overall cost leader, innovation strategies and differentiation. Aggressiveness intensity the firm’s efforts to outperform industry rivals, characterized by a combative posture and a forceful repose to competitor’s actions.
Analysis
As disclosed in Table 5 (Appendix) the level of innovation strategies among agri-business enterprises in terms of analysis as rated by respondents obtained a mean rating of 4.78 which is described as very high as disclosed. It denotes that the innovation strategies among business enterprises in terms of analysis were very high and the innovation strategies among business enterprises in terms of analysis are always manifested. This indicates that analysis are practiced by the agri-business enterprises in developing analytical activities by giving importance in providing coordination between different department and using analytical methods for decision- making.
Moreover, agri-business enterprises have positive perceptions towards the analysis and efforts of the business to have internal consistency in achieving its objectives. This findings in consonance with the study of Talke,(2007) who revealed similar results that by systematically pursuing analytical activities such as collecting and interpreting information and deriving managerial implications, business facilitates their objectives with competitive strategies. Such analytical activities are critical for and are likely to positively impact business performance regardless of the external environment.
Defensiveness
The level of innovation strategies among agri-business enterprises in terms of defensiveness as rated by respondents obtained a mean rating of 4.82 which is described as very high. It denotes that the innovation strategies among business enterprises in terms of defensiveness were very high and the innovation strategies among business enterprises in terms of defensiveness are always manifested. Moreover, defensiveness was considered by the business which characterize a high degree of strategy specialization by an emphasis on efficiency, productivity and cost reduction in operations and futurity which reflects an emphasis on a long-term considerations as a strategic imperative for securing a competitive edge.
Furthermore, the business strive to create competitive advantage by leading the market in pioneering new products and developing innovative techniques and processes as perceived by proactiveness and manifest riskiness as a key parameter in determining the decision processes involved in competitive strategy. This is in parallel with the study of Hanaysha and Hilman (2015)which revealed similar investigation that businesses have to make strategies to increase market share which is a very needy thing for a business because if anyone of these strategies works it can bring a massive change in customers’ satisfaction and market share. It was being emphasized that business enterprises have great concern in improving business performance with the innovation strategies. Further, business enterprises with previous positive performance in the business with the implementation of innovation strategies reported positive relation towards the business.
Furthermore, among the six indicators in the innovation strategies among business enterprises, respondents perceived that defensiveness secondly dominated over the other five indicators, namely: aggressiveness, analysis, futurity, proactiveness and riskiness. Based from the data, the business enterprises oftentimes accept defensiveness in implementing innovation strategies. Developing quality and performance of current products continually and making changes in product development method sometimes is important for the business. It is important for the business to have teamwork approach to product/process development project and by using modern management techniques. Hence, business enterprises positively view the execution of defensiveness in the business because they carry out high level of market share from their customers. This finding confirmed the assertion of various authors (Ahlander, Cogley, Robbins & Wangler, 2009) who stated that in an aggressiveness dimension, it measures the business ability to engage organizational resources in the pursuit of increased market share as a means to achieving business unit profitability. Defensiveness is a crucial factor in convincing viewpoint of business enterprises towards the business (Table 6) Appendix.
Futurity
The fourth level of innovation strategies among agri-business enterprises in terms of futurity as rated by respondents obtained a mean rating of 4.53 which is described as very high. It denotes that the innovation strategies among business enterprises in terms of futurity were very high and the innovation strategies among business enterprises in terms of futurity are always manifested. Moreover, the data divulged high level in terms of futurity which means that business enterprises believed the business’ long-term considerations for securing a competitive edge in the turbulent marketplace. Further, this is indicative when they perceived themselves to investigate continually for potential products that will provide competitive superiority in the future and give more importance to potential and prospective customers more than its current customers. The business is future oriented and tries to forecast beforehand future market trends. Therefore, business enterprises believe that the implementation of futurity as an innovation strategy is of significance. This expanded the research of the study of Stambaugh et. al. (2011), who stressed that futurity also appear to play an innovation strategy in business enterprises. It also can be seen in long term relationship with suppliers or other strategic business partners and the extent to which decisions that relate to possible future occurrences are seriously engaged. It reflects issues like sales forecast, possible changes in customer preference and tracking of environmental changes (Table 7) Appendix.
Proactiveness
The level of level of innovation strategies among agri-business enterprises in terms of proactiveness as rated by respondents obtained a mean rating of 4.61 which is described as very high. It denotes that the professionalism innovation strategies among business enterprises in terms of proactiveness were very high and the innovation strategies among business enterprises in terms of proactiveness are always manifested. Furthermore, agri-business enterprises create competitive advantage central to innovative behavior. Innovation activities are encouraged in the business and tries initiator against competitors about producing new products and ides. The business researches new product opportunities continually and an initiator for defining new product in the market. This pursues the assumption of Chang et. Al. (2002), who stipulated that proactiveness’ business have high performance because of their responsiveness to market signals and potential customer’s needs. They may also create new needs by their creativity and build new trend in the market. It explains business drive for first mover position in the market, the ability to take initiatives over environmental situations and the pursuit of new markets through the engagement of value innovations (Table 8) Appendix.
Riskiness
As disclosed in Table 9, the level of level of innovation strategies among agri-business enterprises in terms of riskiness as rated by respondents obtained a mean rating of 4.33 which is described as very high. It denotes that the professionalism innovation strategies among business enterprises in terms of riskiness were high and the innovation strategies among business enterprises in terms of riskiness are oftentimes manifested. Likewise, the data revealed high level of riskiness among business enterprises in implementing innovation strategies. They perceived riskiness as an act with deliberation when making a decision about developing a new product and to develop new products that are successful and make profit most certainly by the manager. This pursues the assumption of various authors (Morgan & Strong, 2003; Söderbom, 2012; Lau & Bruton, 2011) who stipulated that riskiness has an important role in resource allocation and can act as a key parameter in determining the decision processes involved in competitive strategy. This is reflected in its choice and criteria over resource allocation decisions and the general pattern of decision making that profitability of the business may suffer from the adoption of such strategies due to the additional risks incurred and less predictable returns.
Summarizing all the numerical figures, the level of innovation strategies among business enterprises obtained a mean rating of 4.39 which is described as very high. It denotes that the innovation strategies among business enterprises were very high and innovation strategies among business enterprises are always manifested. This further implies that agri-business enterprises acknowledged the neediness to be innovative. Business enterprises correspond to aggressiveness as the willingness of the business to take actions to improve the market position and consider analysis which reflects the knowledge building capacity and enabling processes for organizational learning.
Table 5. Summary on the Level of Innovation Strategies among Business Enterprises in Davao del Sur. May 2019.
Parameters | Mean | Description | |
1 | Aggressiveness | 3.42 | High |
2 | Analysis | 4.78 | Very High |
3 | Defensiveness | 4.82 | Very High |
4 | Futurity | 4.53 | Very High |
5 | Proactiveness | 4.61 | Very High |
6 | Riskiness | 4.33 | Very High |
Overall | 4.39 | Very High |
Level of Customers’ Satisfaction o
The level of customers’ satisfaction in terms of product brand, product price, product promotion, and product quality among business enterprises in Davao del Sur disclosed in the tables below.
Product Brand
As disclosed in the Table 11, the level of customers’ satisfaction in terms of product brand as rated by respondents obtained a mean rating of 4.33 which is described as very high. It denotes that customers’ satisfaction in terms of product brand was high and this means that the items related to customers’ satisfactions in terms of product brand is always manifested. Moreover, the high level of product brand among customers is evident when the brand makes them feel good and delighted and increases their frequency of buying. Product brand enhances the perceptions that they have a desirable lifestyle and makes a good impression of them on other people and provides solution to their expectations. This is in parallel to the study of several authors (Da Silva, 2010; Lindberg-Repo & Kirsti, 2009; Mohammadian&Ronaghi,2010) who confirmed that brand image is the objective and mental feedback of the consumers when they purchase a product and it should be positive, unique and instant and not created but formed. Customers seem to personally create the brand through their communications across multiple contexts and it causes important distinctions and the preference for one product over the other. More likely, the positive relationship of product brand attracts attention and satisfies customers. (Appendix)
Product Price
As disclosed in Table 12, the level of customers’ satisfaction in terms of product price as rated by respondents obtained a mean rating of 4.31 which is described as very high. It denotes that customers’ satisfaction in terms of product price was very high and this means that the items related to customers’ satisfactions in terms of product brand is always manifested. This implies that if a product offers affordable price that could be a reason for customers to buy it and when they buy a product that offers reasonable price, they feel that they are getting a good buy. Most of the time, customers buy a product that offers points and rewards and price discount has allowed them to buy more quantities of the same product. When they buy a brand that offers free sample, they feel they are getting a good buy. This corroborates with the idea of various authors (Diller, 2000 and Matzler et. al., 2006; Ko, 2011; Hortamani, Ansari & Akbari, 2013) who emphasized that the aspects associated with this domain provides base for customers to determine their level of satisfaction, the so called “price satisfaction”. The price is to be perceived as fair and equitable, the customer should not feel that he/she is fooled and can find similar products cheaper somewhere else. Customers choose companies normally driven by the price, convenience and availability. (Appendix).
Product Promotion
As disclosed in Table 13, the level of customers’ satisfaction in terms of product promotion as rated by respondents obtained a mean rating of 4.33 which is described as very high. It denotes that customers’ satisfaction in terms of product promotion was very high and this means that the items related to customers’ satisfactions in terms of product promotion is always manifested. This implies that if a product offers affordable price that could be a reason for customers to buy it and when they buy a product that offers reasonable price, they feel that they are getting a good buy. Most of the time, customers’ buy a product that offers points and rewards and price discount has allowed them to buy more quantities of the same product. When they buy a brand that offers free sample, they feel they are getting a good buy. This corroborates with the idea of various authors (Diller, 2000 and Matzler et. al., 2006; Ko, 2011; Hortamani, Ansari & Akbari, 2013) who emphasized that the aspects associated with this domain provides base for customers to determine their level of satisfaction, the so called “price satisfaction”. The price is to be perceived as fair and equitable, the customer should not feel that he/she is fooled and can find similar products cheaper somewhere else. Customers choose companies normally driven by the price, convenience and availability (Appendix).
Product Quality
Table 14 disclosed the level of customers’ satisfaction in terms of product quality as rated by respondents obtained a mean rating of 4.57 which is described as high. It denotes that customers’ satisfaction in terms of product quality was high and this means that the items related to customers’ satisfactions in terms of product quality is always manifested. Based from the data, the very high level of product quality among customers is evident when it invites them to buy products with visual appeal and they are satisfied with pure and clean appearance of a product. They are impressed with products that have durable material and products with clear definitions of its functions and love products that are ideal, modern and elegant. This is in parallel to the study of several authors (Lambert, 2012; Jakpar, Na, Johari, Myint, 2012; Novella, 2012) who confirmed that product quality is critical for customer satisfaction. Organizations can ensure customer satisfaction by producing high quality products such as operating characteristics, additional features, product appeal to the five senses and customer’s perception of a product’s quality. Product quality includes consumer’s judgment about the overall superiority or excellence of a product. More likely, the positive relationship of satisfaction with the customers increases their purchases repeatedly from the business. Further, these authors have supported this finding by stipulating that customers comprehend their needs and wants with the quality of a product as one aspect of their satisfaction. (Appendix)
Summarizing all the numerical figures, the level of customers’ satisfactions obtained a mean rating of 4.39 which is described as very high. It denotes that the customers’ satisfactions were very high and this means that the items related to customers’ satisfactions is always manifested. The overall level of customers’ satisfaction is very high which means that the customers’ satisfaction is always manifested. This further implies that customers have high level of satisfaction which means that they are satisfied with the performance of the products and the expectations are met from the product. When customers purchase the product, they are also purchasing the brand image associated with the product as a means to attract attention and satisfy needs. From a customers’ perspective with the price of the product, the customer feel that he/she can afford to buy the product that meets the customer expectation to enhance customer satisfaction and in turn loyalty. They also have understand which promotions they prefer and the effect of promotions to them since promotions are one of the most noticed marketing activities that can greatly impact market share and sustainability. In contrary, customers perceived product quality as the overall superiority or excellence of a product and a principal factor established to influence customer satisfaction.
Table 6. Summary on the Level of Customers’ Satisfaction among Business Enterprises in Davao del Sur. May 2019.
Parameters | Mean | Description | |
1 | Product Brand | 4.33 | Very High |
2 | Product Price | 4.31 | Very High |
3 | Product Promotion | 4.33 | Very High |
4 | Product Quality | 4.57 | Very High |
Overall | 4.39 | Very High |
Significant Difference on the Level of Innovation Strategies among Agri-business Enterprises by Type of Ownership
Presented in Table 16 is the level of innovation strategies among agri-business enterprises in Davao del Sur. The table shows that sole proprietorship, corporation and cooperative has the same level adaptation of innovation strategies. Moreover, the significance coefficient level of .380 which indicates that innovation strategies widely practiced by agri-business enterprises and highly ensure that owners are abreast with innovations and best practices in managing the business. Therefore, agri-business enterprises applied innovation strategies (aggressiveness, analysis, defensiveness, futurity, proactiveness, and riskiness) in operation.
Table 7. Analysis of Variance on the Level of Innovation Strategies among Agri-Business Enterprises when Analysed by Type of Ownership. May 2019.
Sum of Squares | df | Mean Square | F | Sig. | Decision | |
Sole Proprietorship Corporation Cooperative | 0.304 | 3 | 0.152 | 1.044 | 0.380 | Accept Ho |
1.892 | 13 | 0.146 | ||||
Total | 2.196 | 16 |
Significant Difference on the Level of Innovation Strategies among Agri-business Enterprises as to Type of Ownership
Presented in the Table 17 is the level of innovation strategies among agri-business enterprises in Davao del Sur as to type ownership using post-hoc analysis, the table shows that Sole Proprietorship vs. Corporation (.986), Sole Proprietorship vs. Cooperative (.184), Corporation vs. Cooperative (.217) it indicates that every ownership has greater significance level. Therefore, the three identified type of ownerships highly adopted innovation strategies.
Table 8. Analysis of Variance on the Level of Innovation Strategies Among Agri-business Enterprises as to Type of Ownership Using Post Hoc Analysis in Davao del Sur.
Types of Ownership | Mean Difference | Sig. (p-value) | Decision on Ho2 |
Sole Proprietorship vs. Corporation | .00389 | .986 | Accept |
Sole Proprietorship vs. Cooperative | .41806 | .184 | Accept |
Corporation vs. Cooperative | .31917 | .217 | Accept |
Relationship between Innovation Strategies and Customers’ Satisfaction
Table 18 shows the relationship between the level of innovation strategies and customers’ satisfaction among agri-business enterprises in Davao del Sur. The table revealed a correlation coefficient relationship of which denotes a strong positive linear relationship.
The computed coefficient of determination (r2) is 0.910*. This means the positive variation of the level customers’ satisfaction was caused by the level innovation strategies among agri-business enterprises. Furthermore, the correlation has p-value (0.021) which is lower than 0.05 level of significance, thus reject the hypothesis. Result indicated that there is significant relationship between the two variables. Therefore, it can be stated that innovation strategies among agri-business enterprises has a positive and direct effect on the satisfaction of customers This finding of the study corroborates with the propositions of Hanaysha and Hilman (2015), which states that companies have to make strategies and development to give better satisfaction to their customers. These strategies are a tool for satisfaction and to increase market share which is a very needy thing for a company because if anyone of these strategies works it can bring a massive change in customers’ satisfaction and market share. It also brings loyalty of the customer towards the product. Such a change may be useful for achieving greater customer satisfaction and higher share in the market. Companies bring about many changes and new innovations to attract customers and give them more satisfaction because it is the need of new era. Satisfaction level of customer changes at every point that’s why it’s compulsory for the companies to bring these changes.
In conjunction, this affirmed to the study of several authors (Naveed, Akhtar & Cheema, 2013) who found that research on innovation leads to the customer satisfaction in every sector because company brings innovative changes in its products to make customer satisfied and meet their needs. When a company makes innovative product, customer satisfaction is achieved and the loyalty of the customers also increases towards their product. The value of the innovative product in the view of customer also maximizes. The innovation also described as a process of converting the invention or idea into a product that customer purchase and provides financial benefits to its providers. This idea that have to convert into an innovation and into a product or service must have the quality to satisfy some specific needs of the customers and can be implemented at an economic cost to convert into an innovation (Nemati, Khan & Iftekhar, 2010). This research found that the product quality improvement and the competitive price could increase customer satisfaction.
Table 9. Relationship between the Innovation Strategies and Customers’ Satisfaction among Agri-Business Enterprises in Davao del Sur. May 2019.
Coefficient r | Description | Sig. value | Decision | |
Innovation Strategies
Customers’ Satisfaction |
0.910* | Strong positive linear relationship | 0.021 | Reject Ho |
*means significant at 0.05 level of significance
SUMMARY, CONCLUSION, AND RECOMMENDATION
Summary
This study aimed to determine the significant relationship between innovation strategies and customer satisfaction among agri-business enterprises in Davao del Sur. Sixteen agri-business enterprises were identified, with 6.75% established between 1971 and 1980, with the Mindanao Baptist Rural Life Center (MBRLC) being the first to establish its operations in 1971.
In 1990, the Magsaysay Farmers Multi-purpose Cooperative (MFMC) followed, also contributing 6.75%. The years 1991-2000 saw 12.50% of agri-business enterprises established, including Hillcrest Poultry Farm (1998) and ND Food Processing (1999). From 2001-2010, 37.50% of agri-business enterprises were launched, such as LSV Farm (2005), Double S Food Products (2007), Noriel Poultry Farm, Magsaysay Organic Farmers Marketing Cooperative (2008), Lao Integrated Farm, Inc. (2009), and MAGSAN Delicious Chip (2010).
The remaining 37.50% of agri-business enterprises were established between 2011-2020, including St. Benedict Dairy Farm (2011), Balutakay Coffee Farmers Association (2013) – a renowned coffee producer, Rivendell Farm (2015), Cherish Marketing (2016), Isabel Food Products (2016), and AMD Products (2017).
Survey results indicated that only 6.25% of agri-businesses had expanded by opening three branches, with Lao Integrated Farm, Inc. being one of the key examples. LSV Farm had established two branches, and 87.50% of the enterprises operated solely in their original locations.
Regarding employment, 56.25% of agri-businesses employed at least 10 people, with 31.25% employing between 11-20, and 12.50% employing more than 40.
The study further revealed that agri-businesses contribute significantly to the agri-processing industry and the reduction of unemployment, positively impacting the economic development of the country.
Regarding ownership, three types were observed: sole proprietorship (56.25%), corporation (18.75%), and cooperative (25%).
The majority of customers fell between the ages of 21-30 (34%), with 29% being under 20. In terms of marital status, 58.50% of customers were single, while 37.94% were married, and 3.56% were widowed. Of these customers, 54.15% were female, and 45.85% were male.
The educational profile of customers indicated that 48.22% had completed college, 35.17% had finished high school, and a small portion had completed vocational training (5.14%) or graduate studies (2.37%). Most respondents reported a monthly income between PHP 16,000 and PHP 20,000, which contributed to their ability to purchase agri-business products.
In conclusion, the results of the correlation analysis revealed a significant relationship between innovation strategies and customer satisfaction. The findings imply that customers are satisfied when their expectations, including product quality, brand, price, and promotion, are met. Innovation strategies, including aggressiveness, defensiveness, futurity, proactiveness, and riskiness, were found to enhance customer satisfaction and business performance.
Conclusion
Based on the study’s findings, the following conclusions were drawn:
- Over half of the agri-business enterprises in Davao del Sur were established in the 20th century, with expansion outside their original locations not being a primary focus. Most businesses employed at least 10 workers, and the majority operated as sole proprietorships.
- The majority of customers were aged 21-40, predominantly single, female, and had a college education, earning between PHP 16,000 and PHP 20,000 monthly.
- The overall level of innovation strategies among agri-business enterprises was very high, with key strategies such as aggressiveness, analysis, defensiveness, futurity, proactiveness, and riskiness receiving very high ratings.
- The overall customer satisfaction level was very high, with customers rating product brand, price, promotion, and quality as very high.
- There is a significant relationship between innovation strategies and customer satisfaction, meaning that innovation directly influences customer contentment.
- Agri-businesses with various ownership types, including sole proprietorships, corporations, and cooperatives, demonstrate similar levels of innovation strategy adoption.
Recommendations
In light of the findings and conclusions, the following recommendations are suggested:
- Agri-business owners, regardless of the size of their enterprises, should closely monitor trends and provide the necessary support for innovation to enhance business performance and increase customer satisfaction. Strategies that improve product quality, pricing, promotion, and brand image can significantly contribute to market share growth.
- Agri-businesses should recognize the importance of innovation in enhancing their market presence. Innovations focused on defensiveness, riskiness, and futurity can help small enterprises strengthen their ability to adapt to market changes, improving their competitive edge and customer satisfaction.
- Agri-businesses are encouraged to implement innovation strategies by conducting action research to identify factors affecting their businesses and uncover any constraints that may hinder customer satisfaction.
- Customers should continue supporting agri-business products and provide valuable feedback to help businesses improve based on their preferences and needs.
- Further studies should be conducted to explore other factors that may influence customer satisfaction in the agri-business sector, and to validate the results of this research.
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