International Journal of Innovative Technology and Exploring Engineering (IJITEE)
ISSN: 2278-3075, Volume-9 Issue-1, November 2019
4571
Published By:
Blue Eyes Intelligence Engineering
& Sciences Publication
Retrieval Number: A5212119119/2019©BEIESP
DOI: 10.35940/ijitee.A5212.119119
Abstract: The study seekss to determine factors that affect
customer satisfaction towards their loyalty in Indonesian
telecommunications industry. The research seeks to find out how
the influence of financial factors, Technology Factors and
Customer Service Factors are on Customer Satisfaction and the
influence of financial factors, Technology Factors and Customer
Service Factors on Customer Loyalty directly or indirectly. The
sources of data used in the article are major data and minor data.
The major data were attained from a structured questionnaire.
The questionnaire was opened online and the total respondents
obtained were 160 respondents and they were valid. The results of
this questionnaire indicate that the factors that influence
Customer Satisfaction, namely, financial factors, technological
factors and customer service factors also affect Customer Loyalty
to telecommunications service providers in Indonesia. This study
found that Financial Factors, Technology Factors and Customer
Service Factors had a prospective influence on Customer
Satisfaction, Customer Satisfaction had a determining
relationship with Customer Loyalty and it was found that
indirectly Financial Factors and Technology Factors through
Customer Customer Satisfaction had a determining influence on
Customer Loyalty whereas Customer Service Factor did not.
Keywords: Customer Satisfaction, Customer Loyalty,
financial factors, technological factors, customer service factors.
I. INTRODUCTION
Based on data from BPS (Indonesian Statistics Body)
presented in the Analysis of Indonesian Telecommunications
Industry in the Ministry of Telecommunication, contribution
of the Information and Communication sector always goes up
every year. In 2017, BHP (Biaya Hak Penggunaan [Usage
Rights Fee]) frequencies reached IDR16.56 trillion, including
an additional IDR 4.72 trillion from the 2.1 GHz and 2.3 GHz
frequency auctions paid in that year. This is due to the current
trend of telecommunications technology that has shifted from
voice and SMS to data, so that this provides an increase in the
benefits of cellular telephones in Indonesia so that the
telecommunications market (voice and data) is contested by
several cellular operators, namely PT Hutchison 3 Indonesia,
Revised Manuscript Received on November 05, 2019.
* Correspondence Author
Yuli Widianty, Business Management Program, Management
Department, BINUS Business School Master Program, Bina Nusantara
University, Jakarta, Indonesia. Email: yuli.widianty@binus.ac.id
Asriana Dwiyanthi, Business Management Program, Management
Department, BINUS Business School Master Program, Bina Nusantara
University, Jakarta, Indonesia. Email: asriana.dwiyanthi@binus.ac.id
Ni Ketut Prawianti, Business Management Program, Management
Department, BINUS Business School Master Program, Bina Nusantara
University, Jakarta, Indonesia. Email: ni.prawianti@binus.ac.id
Lim Sanny*, Business Management Program, Management
Department, BINUS Business School Master Program, Bina Nusantara
University, Jakarta, Indonesia. Email: lsanny@binus.edu
XL Axiata, Indosat, Sampoerna Telekomunikasi Indonesia,
Telkomsel, Smartfren, and BWA Internux (Bolt) operators
[1].
This is supported by the development of
telecommunications usage based on the data of Indonesian
Telecommunication Statistics of 2017, which is the
percentage of population using cellular telephones that
continues to increase, until 2017 it reached 59.59%. The
increase in cellular application was backed up by the rise in
computer possession and internet penetration in home use,
which reached 19.11% for computer pssession and 57.33%
for home internet penetration. Data of Indonesian
Telecommunications Statistics of 2017 from the Indonesian
Central Statistics Agency (BPS) showed that the number of
cellular mobile subscribers according to host companies such
as PT Telkomsel has 196.32 million customers; PT Indosat
has 110.19 million customers, PT XL Axiata with 52.5
million customers. The cellular operators are each trying to
improve their network, infrastructure services, after-sales
services, promotions and conduct tariff warfare with each
other to attract new customers, retain their customers and
increase the loyalty of their current customers [2]-[3].
Switching and retention are short-term consequences of
Customer Satisfaction, while loyalty is a long-term
consequence of Customer Satisfaction [4]. Every individual
in commercial and institutional relations has two responses,
when faced with unsatisfied services such as response to be
away, response to complaint and response to loyal [5]-[6].
A common problem faced by cellular telecommunications
service providers is achieving customer acquisition targets by
retaining existing customers to increase company revenue.
Therefore, cellular service companies are supposed to know
the factors that cause decreased customers’ satisfaction that
can make them switch to another operator and develop
strategies in dealing with factors that influence Customer
Satisfaction to increase Customer Loyalty [7]. Cellular
operator companies must utilize consumer locking to increase
their profits [8]. In shorts, the financial performance of
telecommunications service brands plays an important role in
implementing Customer Loyalty strategy, especially in a
competitive environment. Customers are assets that must be
maintained properly by telecommunications service providers
in Indonesia. Identifying determinants of Customer
Satisfaction and the relationship of Customer Satisfaction
with Customer Loyalty is very important for profitability,
survival and competitiveness of companies with other
competitors in the mobile telecommunications industry.
Customer Loyalty In Indonesian’s
Telecommunication Industry
Yuli Widianty, Asriana Dwiyanthi, Ni Ketut Prawianti, Lim Sanny