Analysis of the Effect of Product Quality on Indihome Customer Satisfaction and Loyalty of PT Telkom Regional I Sumatra

Oct 13, 2025 by magicalceylontours.com 46 views

Analysis of the Effect of Product Quality on Indihome Customer Satisfaction and Loyalty of PT Telkom Regional I Sumatra

Introduction

In today's competitive business world, product quality is a crucial factor that affects customer satisfaction and loyalty. PT Telkom Regional I Sumatra, a leading telecommunications company in Indonesia, has been serving the Medan region with its Indihome services. However, the company faces challenges in maintaining customer satisfaction and loyalty. This research aims to investigate the effect of product quality on customer satisfaction and loyalty of PT Telkom Regional I Sumatra, specifically in the Medan Telecommunications Area (Witel).

The Importance of Product Quality

Product quality is a critical factor that affects customer satisfaction and loyalty. It is the foundation of a company's reputation and can make or break its success. In the telecommunications industry, product quality is particularly important as it directly affects the customer's experience and satisfaction with the service. A high-quality product can lead to increased customer satisfaction, loyalty, and ultimately, revenue growth.

Research Methodology

This research is a descriptive causal study, with product quality as the independent variable and customer loyalty as the dependent variable. Customer satisfaction acts as an intervening variable, mediating the relationship between product quality and customer loyalty. The population of this study consists of Indihome service users in Medan Witel during the period January to August 2018, with a total of 43,250 customers. A sample of 396 customers was taken using the Simple Random Sampling method.

Research Findings

The results of this study show that product quality plays a significant role in determining customer satisfaction, with a coefficient of determination of 84.8%. This means that 84.8% of customer satisfaction can be explained by product quality factors, including performance, diversity, reliability, suitability, durability, service capabilities, and perceived quality. The results also show that customer loyalty is influenced by product quality and customer satisfaction, with a coefficient of determination of 9.5%.

Path Analysis

Through path analysis, it can be seen that the direct effect of product performance on customer satisfaction reaches 0.183, while the product endurance shows an effect of 0.104. The service capability shows a significant effect of 0.548, while the perceived quality reaches 0.081. These results confirm the importance of product quality in maintaining customer satisfaction.

In terms of customer loyalty, the direct effect of product performance was recorded at 0.220, the durability of 0.149, the quality perceived was 0.216, and customer satisfaction with loyalty reached 0.421. These results indicate that customer satisfaction has a large contribution to customer loyalty.

Conclusion and Recommendations

In conclusion, the quality of Indihome products of PT Telkom Regional I Sumatra has a significant influence on customer satisfaction and loyalty. This shows that the company must continue to improve the quality of products and services to ensure customer satisfaction, which in turn will create higher customer loyalty.

For recommendations, PT Telkom must consider conducting training for employees in improving service capabilities, as well as conducting ongoing evaluations and improvements to the products offered. With the right focus on product quality and customer experience, PT Telkom can strengthen its position in the market and improve long-term relationships with Indihome customers in Medan.

Implications of the Study

This study has several implications for PT Telkom Regional I Sumatra and the telecommunications industry as a whole. Firstly, it highlights the importance of product quality in maintaining customer satisfaction and loyalty. Secondly, it suggests that customer satisfaction is a critical factor in determining customer loyalty. Finally, it recommends that PT Telkom should focus on improving service capabilities and conducting ongoing evaluations and improvements to the products offered.

Limitations of the Study

This study has several limitations. Firstly, it is a descriptive causal study, which may not capture the complexity of the relationship between product quality and customer satisfaction and loyalty. Secondly, it is based on a sample of 396 customers, which may not be representative of the entire population of Indihome service users in Medan Witel. Finally, it does not consider other factors that may influence customer satisfaction and loyalty, such as price, convenience, and customer service.

Future Research Directions

This study suggests several future research directions. Firstly, it recommends that future studies should investigate the relationship between product quality and customer satisfaction and loyalty in other industries. Secondly, it suggests that future studies should consider other factors that may influence customer satisfaction and loyalty, such as price, convenience, and customer service. Finally, it recommends that future studies should use more advanced statistical methods, such as structural equation modeling, to capture the complexity of the relationship between product quality and customer satisfaction and loyalty.

Conclusion

In conclusion, this study has shown that product quality plays a significant role in determining customer satisfaction and loyalty of PT Telkom Regional I Sumatra. It has also highlighted the importance of customer satisfaction in determining customer loyalty. Finally, it has recommended that PT Telkom should focus on improving service capabilities and conducting ongoing evaluations and improvements to the products offered.
Frequently Asked Questions (FAQs) about the Effect of Product Quality on Indihome Customer Satisfaction and Loyalty

Q: What is the main objective of this study?

A: The main objective of this study is to investigate the effect of product quality on customer satisfaction and loyalty of PT Telkom Regional I Sumatra, specifically in the Medan Telecommunications Area (Witel).

Q: What is the significance of product quality in the telecommunications industry?

A: Product quality is a critical factor that affects customer satisfaction and loyalty in the telecommunications industry. It is the foundation of a company's reputation and can make or break its success.

Q: What is the population of this study?

A: The population of this study consists of Indihome service users in Medan Witel during the period January to August 2018, with a total of 43,250 customers.

Q: What is the sample size of this study?

A: A sample of 396 customers was taken using the Simple Random Sampling method.

Q: What are the independent and dependent variables of this study?

A: The independent variable is product quality, while the dependent variable is customer loyalty. Customer satisfaction acts as an intervening variable, mediating the relationship between product quality and customer loyalty.

Q: What are the product quality factors that affect customer satisfaction?

A: The product quality factors that affect customer satisfaction include performance, diversity, reliability, suitability, durability, service capabilities, and perceived quality.

Q: What is the coefficient of determination of product quality on customer satisfaction?

A: The coefficient of determination of product quality on customer satisfaction is 84.8%, which means that 84.8% of customer satisfaction can be explained by product quality factors.

Q: What is the coefficient of determination of product quality on customer loyalty?

A: The coefficient of determination of product quality on customer loyalty is 9.5%, which means that 9.5% of customer loyalty can be explained by product quality factors.

Q: What is the direct effect of product performance on customer satisfaction?

A: The direct effect of product performance on customer satisfaction is 0.183.

Q: What is the direct effect of product endurance on customer satisfaction?

A: The direct effect of product endurance on customer satisfaction is 0.104.

Q: What is the direct effect of service capability on customer satisfaction?

A: The direct effect of service capability on customer satisfaction is 0.548.

Q: What is the direct effect of perceived quality on customer satisfaction?

A: The direct effect of perceived quality on customer satisfaction is 0.081.

Q: What is the direct effect of product performance on customer loyalty?

A: The direct effect of product performance on customer loyalty is 0.220.

Q: What is the direct effect of product durability on customer loyalty?

A: The direct effect of product durability on customer loyalty is 0.149.

Q: What is the direct effect of perceived quality on customer loyalty?

A: The direct effect of perceived quality on customer loyalty is 0.216.

Q: What is the direct effect of customer satisfaction on customer loyalty?

A: The direct effect of customer satisfaction on customer loyalty is 0.421.

Q: What are the implications of this study for PT Telkom Regional I Sumatra?

A: The implications of this study for PT Telkom Regional I Sumatra are that the company should focus on improving service capabilities and conducting ongoing evaluations and improvements to the products offered.

Q: What are the limitations of this study?

A: The limitations of this study are that it is a descriptive causal study, which may not capture the complexity of the relationship between product quality and customer satisfaction and loyalty. Additionally, the sample size is relatively small, and the study does not consider other factors that may influence customer satisfaction and loyalty.

Q: What are the future research directions suggested by this study?

A: The future research directions suggested by this study are that future studies should investigate the relationship between product quality and customer satisfaction and loyalty in other industries. Additionally, future studies should consider other factors that may influence customer satisfaction and loyalty, such as price, convenience, and customer service.