Maintaining Traditional Market to Encourage Local Economy

Abstract

As the smallest unit in national development, villages must be independent and reduce financial dependence from the central and regional governments. Financial independence can be achieved by optimizing the role of village-owned enterprises (BUMDesa). One of the roles of BUMDesa Srimartani is the management of the Kembangsari Traditional Market. This study aims to analyze: 1) merchant and consumer satisfaction, 2) determinants of consumer satisfaction, and 3) the influence of consumer satisfaction on the local economy, using Importance-Performance Analysis, consumer satisfaction index, and Partial Least Square. The results showed that the level of satisfaction with market management was included in the satisfied category. Factors that influence the level of consumer satisfaction are accessibility, product condition, and physical infrastructure. The responsibility factor does not significantly affect customer satisfaction. Local economy can be considerably influenced by consumer satisfaction. Increased consumer satisfaction causes the market to develop faster and increases the acceptance of market levies. As a result, the local economy will grow through an increase in the original local revenue.