International Journal of Multidisciplinary Research and Development

International Journal of Multidisciplinary Research and Development


International Journal of Multidisciplinary Research and Development
International Journal of Multidisciplinary Research and Development
Vol. 4, Issue 10 (2017)

The effect of service quality and corporate image on customer satisfaction and loyalty in mobile telecommunication industry in Indonesia


Untung Setiyo Purwanto, Raihan

This study aims to investigate what impact service quality and corporate image have on customer satisfaction and loyalty in mobile telecommunication industry in Indonesia. This study was driven by the fact that research on the simultaneous relationship between these four variables is relatively sparse, especially in the context of mobile telecommunication industry in Indonesia. The sample involved in this study comprises of 147 mobile phone users in Jakarta. The sample was distributed on five mobile telecommunication operators: Telkomsel, Indosat Ooredoo, Tri, XL Axiata, and Smartfren. As hypothesed in this study, it was found that service quality, corporate image, and customer satisfaction are important antecedents of customer loyalty. The results provided a contribution to the literature by examining the simulateneous relationship involving service quality, corporate image, customer satisfaction, and customer loyalty. The results of this study imply that the mobile telecommunication operators should be aware that customer satisfaction and loyalty is a prerequisite condition for the success to compete. Therefore, the operator have to improve their quality of service. In addition, the operators should be aware that they need to enhance their corporate image. The premise is that customer satisfaction and loyalty is influenced by the extent to which their corporate image.
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