EXPLORING THE ROLE OF MARKETING INNOVATION IN ENHANCING SERVICE QUALITY AND COMPETITIVE ADVANTAGE OF SMEs IN PALANGKA RAYA UNIVERSITY OF CENTRAL KALIMANTAN

Abstract

This study examines the relationship between marketing innovation, service quality, and competitive advantage in two local coffee shops in Palangka Raya: Terserah.id Café and Pistos Café & Billiard. Using a qualitative case study approach, the research aims to capture real operational issues through interviews, observations, and documentation collected over a four-week period. The results show that both cafés experience inconsistent service quality. Terserah.id faces workload imbalances during busy hours, while Pistos struggles with weak internal coordination even though it has more employees. These conditions create unstable customer experiences and reduce the cafés' competitive strength. The study also finds that marketing innovation cannot be implemented effectively when basic service processes are not yet stable. Although both café owners express interest in creative and digital marketing strategies, operational challenges make it difficult to apply them. Overall, the findings emphasize that strong and consistent service quality is the main foundation for building competitive advantage and supporting the successful implementation of marketing innovation in MSME-based service businesses.