Research Paper
Year: 2021 | Month: March | Volume: 8 | Issue: 3 | Pages: 646-658
The Influence of Brand Image and Service Quality on Customer Loyalty which is Mediated by Customer Satisfaction (Case Study PT. Indosat)
M. Ali Iqbal1, Rhian Indradewa2
1Mercubuana University, Jl. Meruya Selatan No. 1, Kembangan, Jakarta, Indonesia
2Esa Unggul University, Jl. Arjuna Utara 9, Kebon Jeruk, Jakarta, Indonesia
Corresponding Author: M. Ali Iqbal
ABSTRACT
Communication technology is currently not only a necessity for the general public but also a prospective business field. The cellular operator business from year to year continues to increase along with the times. The telecommunication industry in Indonesia from year to year continues to experience growth, even the number of cellular phone subscribers has reached around 240 million at the end of 2010 and is expected to continue to grow. This has made a number of telecommunications operators experience rapid growth and continue to make efforts to attract new customers and maintain customer loyalty. Based on 2018 Centre Bureau of Statistics data, it can be seen that the telecommunications service sector provides the largest share of Gross Domestic Product (GDP) in the Information and Communication sector compared to other sectors, with an increasing contribution value in rupiah. However, if seen from the trend, the share of telecommunication services to Information and Communication GDP has decreased. In 2010, the share of the telecommunications services sector reached 76.53%, and experienced a downward trend until 2017. This shows that the growth of telecommunications in Indonesia continues to decline. One cellular that continues to experience a downward trend is PT. Indosat. Percentage value of net profit margin PT. Indosat is sometimes in a positive and negative zone and in 2018 it is in a quite deep negative zone. This study aims to examine the phenomenon of customer loyalty, both in terms of brand image, service quality and customer satisfaction. The type of research used is a research with a conclusive design, which is a type of inference research that aims to test a certain hypothesis, either through in-depth research on a problem (descriptive) or looking for a relationship between variables (correlative) between the independent variable and the dependent variable. The results showed that brand image and service quality have an effect on costomer loyalty. Customer satisfaction has an effect on customer loyalty. The practical implications are that PT Indosat should manage its brand image, service quality and customer satisfaction as the most important factor influencing customer loyalty.
Keywords: brand image, service quality, customer satisfaction and customer loyalty.
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