The Effect of Customer Value and Service Quality on Customer Satisfaction and the Implications for Telkomsel Prepaid Card Purchasing Decisions

Abstract

The Indonesian telecommunications industry has been heavily affected by the rapid advances in telecommunications technology. Mobile telecommunications are an advancement in the field of communication technology. One of the cellular telephone service providers in Indonesia is PT Telkomsel. In Indonesia, Telkomsel, which launched its postpaid service on May 26, 1995, is the second GSM (Global System Mobile) cellular telephone provider. With 169.2 million users as of June 2021, PT. Telekomunikasi Indonesia (Persero) Tbk has increased its customer base by 5.7% from the same period last year. Telkomsel has a total of 162.48 million cellular subscribers. The remaining 6.72 million people are postpaid subscribers. The cellphone provider in Indonesia with the most customers as of June 2021 is PT. Cellular Telecommunications (Telkomsel). Customer satisfaction is very important for the survival of a company, so it is very important for companies to be able to leverage consumer preferences to offer consumer value, provide excellent customer service, and ultimately drive repeat business. In connection with the above, the authors need to conduct a study on customer satisfaction and decision making to buy Telkomsel prepaid card cellular users. This study aims to examine the phenomenon of making a decision to buy both in terms of customer satisfaction, customer value and service quality. It is hoped that Indonesia will be able to use the findings from this mobile research as a guide to further improve the functionality of Telkomsel's prepaid card. Research with a conclusive design, or a type of inference research that seeks to test certain hypotheses, is what is used. This can be descriptive, exploring a problem, or correlative, looking for relationships between variables between the independent and dependent variables. Customer value has a direct and significant effect on customer satisfaction. Customer value has a direct and not significant effect on purchasing decisions. Service quality has a direct and significant effect on customer satisfaction. Service quality has a direct and not significant effect on purchasing decisions. Customer satisfaction has a direct and significant effect on purchasing decisions. Customer value has an indirect and is not significant effect on purchasing decisions through customer satisfaction. Service quality has an indirect and significant effect on purchasing decisions through customer satisfaction. The practical implication is that Telkomsel prepaid cards must manage customer value as an important factor influencing customer satisfaction as well as service quality as the most important factor influencing purchasing decisions and managing customer satisfaction as the most important factor influencing purchasing decisions. Keywords: Customer Value, Service Quality, Customer Satisfaction, and Purchase Decision.