The Influence Of Product Quality And Product Price On The Satisfaction And Loyalty Of Prepaid Cellular Telecommunications Customers (Telkomsel) In Students Majoring In STIE-IBBI Management Department Medan

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The Influence of Product Quality and Price on Customer Satisfaction and Loyalty in Telkomsel Prepaid Customers: A Study on Students Majoring in STIE-IBBI Management Department

Introduction

In today's digital age, cellular communication has become an essential part of our daily lives. With the increasing demand for mobile services, the telecommunications industry in Indonesia has become highly competitive. Telkomsel, one of the leading cellular operators in Indonesia, must continuously improve its product quality and pricing strategies to maintain its loyal customers. This study aims to investigate the effect of product quality and price on customer satisfaction and loyalty among students majoring in STIE-IBBI Management Department in Medan.

Background

The telecommunications industry in Indonesia has experienced rapid growth in recent years, driven by increasing demand for mobile services. With the rise of mobile internet, social media, and online transactions, the need for reliable and fast mobile services has become essential. Telkomsel, as one of the leading cellular operators in Indonesia, has a significant market share and must continuously improve its product quality and pricing strategies to maintain its loyal customers.

Methodology

This study uses a descriptive and exploratory qualitative approach to investigate the effect of product quality and price on customer satisfaction and loyalty among students majoring in STIE-IBBI Management Department in Medan. A total of 167 students became respondents in this study, with path analysis as a data analysis method. The data was collected through interviews, documentation studies, and questionnaires.

Results

The results of this study showed that simultaneously, product quality and product price had a positive and significant influence on Telkomsel prepaid customer satisfaction and loyalty in Medan STIE-IBBI Management Department students. This indicates that students are very concerned about the quality of the product and the price offered by Telkomsel.

Deeper Analysis

Product Quality

  • Network Quality: Students are very concerned about the stability and reliability of Telkomsel's network services. A stable network is essential for smooth communication and online transactions.
  • Internet Speed: Students require fast internet speeds to access online resources, social media, and online transactions. Telkomsel must ensure that its internet speeds are competitive with other operators.
  • Customer Service: Responsive customer service is essential for resolving customer complaints and issues. Telkomsel must ensure that its customer service is responsive and efficient.

Product Price

  • Data Packages: Students are very sensitive to the price of data packages. They tend to choose packages at affordable prices and according to their needs. Telkomsel must ensure that its data packages are competitive and offer a wide selection of flexible options.
  • Credit Packages: Students also require affordable credit packages to make online transactions and access online resources. Telkomsel must ensure that its credit packages are competitive and offer a wide selection of flexible options.

Customer Satisfaction

  • Customer Experience: Customer satisfaction is based on their experience with Telkomsel's products and services. If students feel satisfied with the quality of the product and the price offered, they will tend to recommend Telkomsel to others.
  • Word-of-Mouth: Satisfied customers will tend to recommend Telkomsel to their friends and family, which can lead to increased customer acquisition and retention.

Customer Loyalty

  • Customer Attachment: Customer loyalty is the level of customer attachment to Telkomsel. Students who are satisfied with Telkomsel's products and services will tend to use Telkomsel's products and services for a long time and do not switch to other operators.
  • Switching Costs: Students who are satisfied with Telkomsel's products and services will tend to incur higher switching costs, which can lead to increased customer retention.

Suggestions for Telkomsel

  • Improve Product Quality: Telkomsel must continue to improve the quality of its products and services, such as improving network quality, internet speed, and customer service responsiveness.
  • Maintain Competitive Prices: Telkomsel must maintain competitive product prices while still paying attention to the added value offered to customers.
  • Build Attractive Loyalty Program: Telkomsel must build an attractive loyalty program to increase customer loyalty and retention.

Conclusion

This study provides valuable information for Telkomsel in understanding the needs and preferences of its customers. By understanding the factors that influence customer satisfaction and loyalty, Telkomsel can develop a more effective strategy to maintain and improve its customer base. The study's findings suggest that Telkomsel must continue to improve its product quality and pricing strategies to maintain its loyal customers.
Frequently Asked Questions (FAQs) on the Influence of Product Quality and Price on Customer Satisfaction and Loyalty in Telkomsel Prepaid Customers

Q: What is the main objective of this study?

A: The main objective of this study is to investigate the effect of product quality and price on customer satisfaction and loyalty among students majoring in STIE-IBBI Management Department in Medan.

Q: What methodology was used in this study?

A: This study used a descriptive and exploratory qualitative approach, collecting data through interviews, documentation studies, and questionnaires. A total of 167 students became respondents in this study, with path analysis as a data analysis method.

Q: What are the key findings of this study?

A: The results of this study showed that simultaneously, product quality and product price had a positive and significant influence on Telkomsel prepaid customer satisfaction and loyalty in Medan STIE-IBBI Management Department students.

Q: What are the factors that influence customer satisfaction and loyalty in this study?

A: The factors that influence customer satisfaction and loyalty in this study include:

  • Network Quality: Students are very concerned about the stability and reliability of Telkomsel's network services.
  • Internet Speed: Students require fast internet speeds to access online resources, social media, and online transactions.
  • Customer Service: Responsive customer service is essential for resolving customer complaints and issues.
  • Data Packages: Students are very sensitive to the price of data packages and tend to choose packages at affordable prices and according to their needs.
  • Credit Packages: Students also require affordable credit packages to make online transactions and access online resources.

Q: What are the implications of this study for Telkomsel?

A: The study's findings suggest that Telkomsel must continue to improve its product quality and pricing strategies to maintain its loyal customers. Telkomsel must ensure that its network quality, internet speeds, and customer service are competitive with other operators. Additionally, Telkomsel must maintain competitive product prices while still paying attention to the added value offered to customers.

Q: What are the limitations of this study?

A: The limitations of this study include:

  • Sample Size: The sample size of this study is relatively small, consisting of 167 students.
  • Sampling Method: The sampling method used in this study is non-probability sampling, which may not be representative of the entire population.
  • Data Collection Method: The data collection method used in this study is based on self-reported data, which may be subject to biases and errors.

Q: What are the future research directions based on this study?

A: The future research directions based on this study include:

  • Investigating the effect of product quality and price on customer satisfaction and loyalty in other demographic groups.
  • Examining the impact of other factors, such as customer service and brand image, on customer satisfaction and loyalty.
  • Developing a more comprehensive model of customer satisfaction and loyalty that incorporates multiple factors.

Q: What are the practical implications of this study for other telecommunications companies?

A: The practical implications of this study for other telecommunications companies include:

  • Improving product quality and pricing strategies to maintain loyal customers.
  • Ensuring that network quality, internet speeds, and customer service are competitive with other operators.
  • Maintaining competitive product prices while still paying attention to the added value offered to customers.