Modelling the buying behavior factors of internet service provider

Abstract

Consumer preferences in the selection of internet service providers can be influenced by several attributes that might have interdependencies. This research was attempted to model the factors of consumer buying behaviour in selecting Internet Service providers in Indonesia. Several attributes, namely service quality, price, customer perceived value, customer satisfaction, and brand image, were examined for their influence on consumer buying behaviour. Employing the purposive sampling method, this study selected 180 respondents that were surveyed using online questionnaires. The data were processed using the Structural Equation Modeling (SEM) with LISREL 8.8 software. The results showed that the attributes that had a significant positive effect on customer buying behaviour were customer perceived value, customer satisfaction, and brand image. Meanwhile, service quality and price did not have a significant effect on customer buying behaviour. However, these two attributes have a positive effect on customer perceived value. Other findings in this study are customer perceived value and brand image positively affect customer satisfaction. This result might be useful for the internet service provider as the consideration in developing a marketing strategy.