The Effect of Product Development Capability and Customer Response Capability on Marketing Performance of Local Wisdom-Based Food Processing MSMEs in Central Java

Central Java has quite a large business potential for processed food based on local wisdom. Areas in Central Java that have the potential for processed food based on local wisdom are spread across the districts of Semarang, Banyumas, Sragen, Grobogan and Wonosobo. The resource-based view theory approach states that competitive advantage is a strength in facing competition. A strategy that utilizes resources as unique skills and assets to become capital to build competitive advantage. Competitive advantage cannot be separated from product development capabilities and customer response capability as an effort to meet consumer needs preferences. The aim of this study is to determine the influence of Product Development Capability and Customer Response Capability on the Marketing Performance of food processed MSMEs in Central Java. There were 150 respondents in this study, the data collection method used a questionnaire. The research results show that product development capability, customer response capability and marketing performance have value index high. The hypothesis that product development capability has significant effect on marketing performance is accepted, also hypothesis that customer response capability has significant effect on marketing performance is accepted