Analysis of Effects of Price, Service Quality, and Information Factors on Customer Satisfaction and Its Impact on the Commitment of Broadband Internet Customers

Arifatulloh Cakrabuana ,Mochamad Ali

doi:10.7176/ejbm/11-23-03

Abstract

This research was conducted with the aim of analyzing the effects of price, service quality, and information factors on customer satisfaction and its impact on the commitment of broadband internet customer. The sample used in this research was 200 respondents of MyRepublic broadband internet service customers taken with simple random sampling technique. The data analysis in this research was Structural Equation Model (SEM) which was carried out using Lisrel 8.80 program. The results showed that the price, service quality, and information quality factors had a direct and positive and significant effect on customer satisfaction and broadband internet customer commitment. Meanwhile, price, service quality, and information quality had an indirect, significant, and positive correlation to customer commitment but did not have an indirect correlation to customer satisfaction. Keywords: price, information quality, service quality, customer satisfaction, customer commitment. DOI : 10.7176/EJBM/11-23-03 Publication date : August 31 st 2019

Highlights

IntroductionThe development of internet usage is increasing every year
Background InIndonesia the development of internet usage is increasing every year
1.3 Purpose of the Study The purpose of this research was to determine the effects of price, service quality, and information quality on customer satisfaction and customer commitment of Fixed Internet Broadband Operator MyRepublic using Structural Equation Model (SEM) analysis with Lisrel 8.80 program

Summary

Introduction

The development of internet usage is increasing every year. Based on the results of research conducted by the Indonesia Internet Service Providers Association (Asosiasi Penyelenggara Jasa Internet Indonesia – APJII) in 2017 published on the official website (https://www.apjii.or.id/content/read/39/342/HasilSurvei-Penetrasi-dan-Perilaku-PenggunaInternet-Indonesia-2017), the development has been continuing to accelerate since 1998 and reached the highest increase in user growth in 2016 by 22.1 million. In 2017, the users had reached 143.26 million or 54.68% of the population in Indonesia. From the development of internet service users which is increasing by the year, it is further pursed to find out the percentage of regions in the use of the internet. This research explored information about internet usage based on age. The highest internet users are those in the 19-34 years age category of 49.52%. The use of the internet is varied besides students and offices and internet users ranging from low to high economic status

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Conclusion