Effective Strategy for Current Account Saving Account Fundraising through the 7P Marketing Mix Framework

Abstract

This study explores the influence of the service marketing mix (7Ps) encompassing Product, Price, Place, Promotion, People, Process, and Physical Evidence on strategic efforts to enhance third-party fund accumulation, particularly in the form of Current Account Saving Accounts (CASA) within the national banking industry. The research adopts a quantitative explanatory approach, employing the Structural Equation Modeling Partial Least Squares (SEM-PLS) technique to empirically analyze relationships among variables. The findings reveal that all seven marketing mix dimensions have a positive and statistically significant effect on strategies aimed at improving CASA performance. Notably, Promotion emerges as the most influential factor (O = 1.815; t = 14.029; p < 0.001), followed closely by Product (O = 1.809; t = 12.953; p < 0.001), Price (O = 1.411; t = 13.721; p < 0.001), and Place (O = 1.376; t = 3.190; p = 0.013). Furthermore, Physical Evidence (O = 1.276; t = 15.068; p < 0.001) contributes substantially, while Process (O = 1.109; t = 5.833; p = 0.003) and People (O = 1.076; t = 4.030; p = 0.002) exhibit moderate yet significant influences. These results emphasize that integrated promotional strategies, customer-oriented product innovation, equitable pricing schemes, accessible service locations, and supportive tangible environments are pivotal in strengthening CASA growth and customer engagement. Theoretically, this research enriches the understanding of service marketing mix applications in financial institutions, while practically, it provides guidance for bank managers and policymakers to design cohesive marketing strategies that optimize customer satisfaction and foster sustainable fund growth.