Patchouli Oil Marketing Efficiency: A Case Study of the South Aceh Patchouli Industry Cooperative

Ernawati Ernawati, Miksalmina Miksalmina, Indra Indra, Raihan Dara Lufika, Fadhlul Reza, Nawar Ashfia

Abstract


This research aims to analyze the efficiency of patchouli oil marketing in the decision-making unit (DMU) of Koperasi Industri Nilam Aceh Selatan (KINAS) and the effect of the price variable on the level of efficiency. The study utilized primary data collected via purposive random sampling. The analysis technique for estimating the level of marketing efficiency was carried out using the Data Envelopment Analysis (DEA) method in the first stage and OLS regression in the second stage. The results found that the patchouli oil industry's average level of marketing efficiency at KINAS has not been efficient at the optimal level. However, using the CRS-DEA and VRS-DEA models indicates that the type of returns to scale is increasing returns to scale (IRS), indicating that the efficiency value has considerable potential for improvement. The two-stage DEA test shows that the price factor significantly influences marketing efficiency. The results of this study imply that increasing marketing efficiency can be done through price increases. Therefore, it requires support from patchouli stakeholders, especially the government, to present regulations that encourage the stabilization and increase of patchouli oil prices.

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