THE EFFECT OF SERVICE QUALITY OF MY TELKOMSEL TOWARD CUSTOMERS’ SATISFACTION AND COMPANY
4. Not durable (Perishability)
Perishability means that services are perishable commodities, which cannot be stored for future reuse, resale or return.
The quality of electronic services (e-servqual) according to Parasuraman and Malhotra (2005: 216) is defined as the expansion of the efficiency and effectiveness of site facilities in shopping, purchasing and shipping. Pasuraman et al. (2005) developed an electronic service quality measurement in four dimensions:
1. Efficiency: User can easily use the service easily without consuming a lot of resources.
2. Fulfillment: Fulfillment of service promises such as the conformity of goods obtained by users with the in- formation they obtain.
3. System availability: Services are able to provide operational functions that are used by users to access ser- vices.
4. Privacy: The ability of service providers to protect personal information and secure services from crime or damage.
2.2 CUSTOMERS SATISFACTION
According to Kotler (2014: 36) customer satisfaction is a feeling of pleasure or disappointment in someone who arises after comparing their perceptions or impressions of the performance or results of a product and their expectations. Supranto (2010: 44) the term customer satisfaction is a label used by customers to summarize a set of visible actions or actions related to a product or service.
According to Lupiyoadi (2014), there are five main factors that must be considered by company in determining the level of customer satisfaction, namely:
1. Product Quality
Customers will feel satisfied when their evaluation results show that the product they use is qualified.
Rational consumers always demand a quality product for every sacrifice made to obtain the product. In this case, good product quality will provide added value in the minds of consumers.
2. Service Quality
Service quality, especially in the service sector, customers will feel satisfied if they get good service or what is expected. A satisfied customer will indicate the possibility of purchasing the same product again. Satisfied customers tend to give perceptions of the company’s products.
3. Emotional
Customers will feel proud and get the confidence that other people will be amazed by him when using a product with a certain brand that tends to have a higher satisfaction level. Satisfaction obtained. Not because of the product quality but social value or self esteem that makes customers satisfied with certain brands.
4. Price
Products having the same quality but charge a relatively low price will provide higher value to their customers.
5. Cost
Customers do not need to pay additional costs or do not need to waste time getting a product or service tends to be satisfied with that product or service.
To determine the effectiveness of policies, implementation and procedures of service to consumers, the company must measure the customer satisfaction level regularly. Measuring and monitoring customer satisfaction can be carried out by several methods that can be used by every company. According to Kotler (2014: 148), there are four methods to measure customer satisfaction, i.e.:
1. Complaint and suggestion systems 2. Survey of customers satisfaction 3. Ghost shopping
4. Lost Customer Analysis
There are several strategies that can be combined to achieve and increase customer satisfaction (Tjiptono, 2015:
161), i.e.:
1. Relationship marketing strategy
That is, the transactional relationship between a company and consumers is sustainable, does not end after the sale is completed, where the long-term partnership with the customer is continuous so that it is hoped that a business can be repeated.
2. Stretegy of superior customer service
It is a strategy to offer the company’s services that are superior to its competitors.
3. Strategy of unconditional guarantees extraordinary
That is a strategy to increase customer satisfaction by developing a good after-sales service for the company.
4. Strategy to improve company performance
Strategies for continuous monitoring and measurement of satisfaction, job appraisal systems, rewards and employee promotions are based on their contribution, empowering employees so that they can make certain decisions related to their duties.
5. Effective complaint handling strategy
Effective treatment provides an opportunity to turn a disgruntled customer into a satisfied customer.
6. Strategy of quality funtion development
The practice of designing a process in response to consumer needs.
2.3 COMPANY IMAGE
According to Kasali (2009: 30) company image is an identity reflection of an organization or a company, in a company that is able to have several different images in the eyes of the public. Company image is considered as an overall assessment of a company in people’s minds (Aydin and Ozer, 2005).
Kasali (2009:28) suggests that an understanding that comes from an incomplete information produces an imperfect image. According to Harrison (2005: 71) complete information about company image includes four elements as follows:
1. Personality: The overall characteristics of a company that are understood by the target public, such as com- panies that can be trusted, companies that have social responsibility.
2. Reputation: What the company has carried out and is believed by the target public based on their own expe- riences and those of other parties, such as the security performance of all bank transactions.
3. Value: Value of a company, in other words, corporate culture, such as a management attitude that cares about customers, employees who are responsive to customer requests and complaints.
4. Corporate Identity: Components that facilitate the introduction of the target public to a company, such as logos, colors, and slogans.
Image is a value that society views of a company. The company wants to provide an image in accordance with the corporate identity that supports the sustainability process. According to Sutojo (2011:63) company image is considered as a public perception of the identity of the company or organization. The benefits of a good and strong corporate image are:
1. Solid medium and long-term competitiveness: A company tries to win over market competition by formulat- ing tactical marketing strategies.
2. Being a shield during a crisis: Most people can understand or forgive the mistakes company made in a good image, which caused them to experience crises.
3. To be the attraction of reliable executives, where reliable executives are company assets.
4. Increase the effectiveness of marketing strategies 5. Save on operating costs because of its good image.
The image formation of a company is closely related to the perception, attitude (stance), and public opinion
about a company. There are five factors for shaping the company’s image, including:
1. Physical identity, in this case what is seen is visual (name of organization, logo, text of choice of font, color, figure of building, and office lobby), audio (such as organization jingle), communication media (company profile, brochure, leaflet, report annual, and media coverage).
2. Non-physical identity, seen from the organization or company history, philosophy, beliefs, values and culture.
3. Organizational management, such as vision, mission, systems, policies, rules, procedures, technology, hu- man resources (HR), organizational strategy, job design, service systems, product positioning.
4. Quality results, product quality and service.
5. Relationship activities and patterns are assessed from the relationship between organization or company and public, the organization’s social responsibility response, communication quality, customer experience, and communication networks.
2.4 CUSTOMER LOYALTY
Mowen and Minor (2002) define loyalty as a condition where customers have a positive attitude towards a brand, have a commitment to the brand, and intend to continue their purchases in the future. According to Uncles and Laurent (1997) in Peter and Olson (2002), loyalty is conceptualized as a measure of attitude (including exclusive purchases and possible repurchases) as well as behavioral measures (including brand preference, likes, commitment and intention to buy).
According to Griffin (2005: 31) states that loyal customers are people who can:
1. Make repeat purchases regularly.
This means customers who have used a product twice or more. They are those who use the same product twice, or buy two different products on two occasions.
2. Buying between product lines or services
It means using all the offered goods or services they need. They use regularly, the relationship with this customer type is strong and long lasting which makes them unaffected by foreign products.
3. Referring to others
It means the goods or services they offer and need, as well as making purchases on a regular basis. In addition, they encourage their friends to use that company’s goods or services or recommend the company to others, thus indirectly the brand has done marketing for the company and brought consumers to the company.
4. Shows immunity to pull from competitors
This means that it is not easily influenced by the pull of competitors’ products or other similar service products.
One of the most relevant models in measuring loyalty is the four stage loyalty model (Oliver, 1999), which is divided as follows:
1. The first stage cognitive loyalty, loyalitas pada tahap ini berhubungan langsung dengan informasi yang terse- dia dan barang atau jasa dalam harga dan manfaatnya. Hal ini karena pelanggan sadar atau peka akan harga dan manfaat produk.
2. The second stage affective loyalty, Second stage affective loyalty, for example the convenience of service, 3. cleanliness of the shop, atmosphere, competitive prices, ease of shopping, and so on.
4. The third stage conative loyalty, loyalty relates to commitment to repurchase a specific product. The cus- tomer at this stage chooses to commit to purchasing another product or service consistently in the future.
5. The fourth stage: action loyalty, The last stage of customer loyalty is the existence of action, including respon- sible behavior and behavior. Actions or acts are seen as very important in the previous stages.
2.5 THOUGHT FRAMEWORK
Figure 1. Thought Framework 2.6 RESEARCH HYPOTHESIS
Based on this definition, the formulation of the hypothesis in this research is as follows:
H1 There is an effect of electronic service quality on the Telkomsel customers satisfaction.
H2 There is an effect of electronic service quality on company image of Telkomsel H3 There is an effect of electronic service quality on customer loyality of Telkomsel.
H4 There is an effect of customer satisfaction on Telkomsel’s customer loyality.
H5 There is an effect of company image on Telkomsel’s customer loyalty.
H6 Customer satisfaction can mediate the relationship between the quality of electronic services and customer loyalty of Telkomsel.
H7 Company image can mediate the relationship between the quality of electronic services and customer loyalty of Telkomsel.
3. RESEARCH METHOD