ANALYSIS OF VALUE CREATION BY PT SMART TELECOM TOWARD CUSTOMER SATISFACTION
By Indah Handayani
A Thesis submitted to the Faculty of BUSINESS
Department of
BUSINESS ADMINISTRATION
In Partial Fulfillment of the Requirements for BACHELOR’SDEGREE
IN
BUSINESS ADMINISTRATION
Swiss German University EduTown BSDCity
Tangerang 15339 INDONESIA Telp. +62 21 3045 0045
Fax. +62 21 3045 0001 E-mail: info@sgu.ac.id
STATEMENT BY THE AUTHOR
I hereby declare that this submission is my own work and to the best of my knowledge, it contains no material previously published or written by another person, not material which to a substantial extent has been accepted for the award of may other degree or diploma at any educational institution, except where due acknowledgement is made in the thesis.
_______________________________________ ________________
Indah Handayani Date
Approved by:
________________________________________ __________________
Netta J Sjafei, MBA; Advisor Date
______________________________________ _________________
Chairman of the Examination Steering Committee Date
ABSTRACT
ANALYSIS OF VALUE CREATION BY PT SMART TELECOM TOWARD CUSTOMER SATISFACTION
By
Indah Handayani
SWISS GERMAN UNIVERSITY EduTown BSDCity
Netta J. Sjafei, MBA; Advisor
In telecommunication industry, each provider has to provide the best and affordable products and services for customers to make them satisfied; otherwise they will migrate to other competitors. This thesis will study and explore the value creation aspects by PT Smart Telecom related to customer satisfaction, which are including product, price, place, promotion, quality, service and company’s image. The method adopted in this thesis is a comprehensive analysis on observation, questionnaire. Data collected is analyzed with customer satisfaction methods which are Performance-Importance analysis and Customer Satisfaction Index (CSI) method. From the Performance-Importance analysis shows that the attributes that need priority of improvement are the warranty, location of outlets, quality of signals, customer service’s performance, customer service’s knowledge of customer and company’s image. Based on calculation of CSI, the customer satisfaction index shows the value of 78%, which means that the respondents are currently satisfied with the performance of PT Smart Telecom.
Keywords: Customer Satisfaction, Performance-Importance Analysis, Customer Satisfaction Index, Value Creation
DEDICATION
I dedicate this thesis to my beloved Mother, Father, Sister, and my special one. They always support me through their prayers and give me their cheers when I was down during the thesis writing. Without their patients, understanding, support and most of all love, the completion of this work would not have been possible.
I also want to dedicate this thesis to my country, PT. Smart Telecom, for those who are concerns in education and also for those who are intend to this thesis.
ACKNOWLEDGMENTS
Here my great pleasure to express thanks to all of you who supports me from the beginning until the completion of this thesis.
Firstly, I give all the praise and glory to My Lord Jesus Christ and Mother Mary for being with me, guiding me with utmost care, giving me grace and strength from beginning to the completion of my thesis.
I would like to say thank you to Mrs. Netta Sjafei, my thesis advisor who always assisted me, encouraged, guided, helped me in any time and place to finish my thesis.
Moreover, we did the thesis consultation and discussion in the very last minute of the submission.
Closer to me, my adorable father, mother, sister and my special one, thank you for the supports, love, and care. Words are not enough to say all of kindness and love. God Bless you all abundantly!
I want to say thank you to my best friends, Pongers, who always helped me and encouraged me to finish my thesis closer to due date. They are the chatty Caroline
“Zu Ing”, the loveable Helen, and the crazy Sandy. I love you all girls! Thanks to my classmates in Business Administration 8, and all of them for giving me support and a lot of fun.
Thank you to JOHAR (Ain, Vendra, Finta, Kutu, and Bimbim) for cheering me up and giving me advises when I’m stressed out and felt like I was in hell. I love you all!
Finally, thank you for all of the lecturers in SGU, OFSETHESIS Committee, Jojo and Hendy (the photocopy guys), the Office Boy and all SGU family that helped the
TABLE OF CONTENTS
STATEMENT BY THE AUTHOR... 2
ABSTRACT ... 3
DEDICATION ... 4
ACKNOWLEDGMENTS ... 5
CHAPTER 1–INTRODUCTION ... 12
1.1 Background ... 12
1.2 Research Objective ... 14
1.3 Research Problem ... 14
1.4 Significance of Study ... 14
1.5 Theoretical Perspective ... 14
1.5.1 The Marketing Process ... 14
1.5.2 Value Delivery Process ... 15
1.6 Scope and Limitation ... 16
1.7 Thesis Structure ... 17
CHAPTER 2–LITERATURE REVIEW ... 18
2.1 Marketing Defined ... 18
2.2 Marketing Process ... 18
2.3 Value Creation for Customers ... 20
2.3.1 Understanding the Marketplace and Customer Needs ... 20
2.3.2 Designing a Customer-Driven Marketing Strategy ... 22
2.3.2.1 Market Segmentation ... 22
2.3.2.2 Market Targeting ... 23
2.3.2.3 Differentiation and Positioning... 24
2.3.3 Construct an Integrated Marketing Program ... 24
2.3.3.1 Products and Services ... 25
2.3.3.2 Price ... 28
2.3.3.3 Place ... 28
2.3.3.4 Promotion ... 28
2.3.4 Quality ... 29
2.4.1 Customer Satisfaction Defined ... 30
2.4.2 Customer Satisfaction Measurement... 31
2.4.2.1 Performance-Importance Analysis ... 31
2.4.2.2 Customer Satisfaction Index ... 32
CHAPTER 3–METHODOLOGY ... 33
3.1 Research Questions and Hypothesis ... 33
3.1.1 Research Questions ... 33
3.1.2 Research Hypothesis ... 33
3.2 Data ... 34
3.3 Data Collection Method ... 34
3.4 Sampling Method ... 35
3.5 Research Design ... 35
3.6 Scales of Measurement ... 35
3.7 Analysis Method ... 36
3.7.1 Exploratory study ... 36
3.7.2 Descriptive Study ... 36
3.7.3 Reliability and Validity Test ... 37
3.7.4 Performance-Importance Analysis Method ... 37
3.7.5 Customer Satisfaction Index Method ... 39
CHAPTER 4–RESULT & DISCUSSION... 41
4.1 Company Profile of PT Smart Telecom ... 41
4.1.1 Vision ... 41
4.1.2 Mission ... 41
4.1.3 Brief History ... 41
4.1.4 Organization Structure ... 42
4.1.5 Market Segmentation ... 42
4.1.5.1 Geographical Segmentation ... 43
4.1.5.2 Behavioral Segmentation ... 43
4.1.7.2 Price ... 48
4.1.7.3 Place ... 49
4.1.7.4 Promotion ... 49
4.1.7.4.1 Promotion Purposes ... 50
4.1.7.4.2 Promotion Purposes ... 50
4.1.7.4.3 Promotion Expectations ... 50
4.1.7.4.4 Advertising Media ... 51
4.2 Respondent’s Profile ... 52
4.2.1 Gender ... 52
4.2.2 Age ... 52
4.2.3 Last Education Background ... 53
4.2.4 Occupation ... 53
4.2.5 Income ... 54
4.2.6 Source of Information ... 55
4.2.7 Products and Services Used ... 55
4.2.8 Respondent’s Profile Summary ... 56
4.3 Questionnaire Validity and Reliability ... 56
4.3.1 Reliability Analysis ... 56
4.3.1.1 Reliability Analysis of Respondent’s Satisfaction... 57
4.3.1.2 Reliability Analysis of Respondent’s Expectation ... 57
4.3.2 Validity Analysis ... 58
4.3.2.1 Validity Analysis of Respondent’s Satisfaction ... 58
4.3.2.2.Validity Analysis of Respondent’s Expectation ... 59
4.4 Performance-Importance Analysis of Product... 60
4.4.1 Performance-Importance Analysis Method ... 62
4.4.2 Performance-Importance Analysis of Price ... 64
4.4.3 Performance-Importance Analysis of Place ... 66
4.4.4 Performance-Importance Analysis of Promotion... 67
4.4.5 Performance-Importance Analysis of Quality... 69
4.4.6 Performance-Importance Analysis of Service... 70
4.4.7 Performance-Importance Analysis of Company’s Image ... 72
4.7.1 Hypothesis 1 ... 79
4.7.2 Hypothesis 2 ... 79
CHAPTER 5–CONCLUSION AND RECOMMENDATION ... 81
5.1 Conclusion ... 81
5.2 Recommendation ... 82
GLOSSARY ... 86
REFERENCES ... 89
APPENDIX 1 - Questionnaire ... 91
APPENDIX 2–SPSS Output Summary ... 98
CURRICULUM VITAE ... 112
