RECIPROCAL PRICING STRATEGY TO IMPROVE MSME PERFORMANCE

This study aims to prove that the new concept of reciprocal pricing can affect the
improvement of MSME performance. This study uses a quantitative approach with the
sample technique used is Cluster Random Sampling This technique is taken with the
argument that this research was conducted in several areas, namely, the tourism area of
MSMEs street food vendors, then the building owner sells drinks or other products that are
not similar. There were 175 MSMEs that became the object of research using the SEM AMOS
analysis tool. Empirical evidence proves that Reciprocal pricing is able to encourage the
improvement of MSME performance. Implement a marketing strategy strategy that focuses
on building and maintaining marketing relationships between one business unit and
another for the long term with the aim of providing different value to customers from
competitors. The novelty of this research is Reciprocal Pricing, which is the concept of
reciprocal pricing by two or more business units that provide mutual benefits to the agreed
price, this variable is thought to improve performance. The implication is that efforts to
improve the performance of MSMEs need to use the concept of Reciprocal Pricing in this
research which is proven to encourage the improvement of MSME performance. The
implementation of reciprocal pricing in improving the performance of MSMEs in tourism
areas is proven to increase the number of consumers.