Marketing Mix and Purchase Intention of Pre-Retirement Credit Among Civil Servants (A Case Study at Bank Sumut Medan Coordinator Branch)

Abstract

This research explores the effects of the seven marketing mix components—Product, Price, Place, Promotion, People, Process, and Physical Evidence—on the purchasing interest of civil servants (ASN) in pre-retirement credit offerings at Bank Sumut's Medan Coordinator Branch. Adopting a quantitative methodology, data from 97 participants were gathered via standardized surveys and evaluated through Partial Least Squares Structural Equation Modeling (PLS-SEM) to verify the model's reliability and validity. The findings demonstrate that Product, Price, Promotion, People, and Physical Evidence have a meaningful and positive impact on purchase intention, whereas Place and Process lack any notable influence, possibly owing to participants' established comfort with prevailing payroll-linked procedures. The study contributes theoretically by reinforcing the applicability of the 7P marketing framework in financial services. Practically, it suggests that Bank Sumut should focus on enhancing product suitability, maintaining competitive interest rates, and improving service professionalism. Moreover, promotional strategies should shift from hard-selling to educational and participatory formats, such as financial literacy programs tailored to ASN approaching retirement. These strategic actions are expected to increase customer engagement and boost the adoption of pre-retirement credit products.