The Effect of Switching Barriers, Hedonic Value on Customer Loyalty with Customer Satisfaction as Mediator

Abstract

This study aims to obtain a structural relationship model between customer loyalty, customer satisfaction, switching barriers and hedonic value in Telkom Jakarta. The variables in this study were the exogenous variables consisting of switching barriers and hedonic values, the mediator variable was customer satisfaction and the endogenous variable was customer loyalty. As a hypothesis in this study is a theoretical model of the effect of switching barriers, hedonic value on customer loyalty with customer satisfaction mediator match (fit) with empirical data on Indihome customers in Jakarta. The research subjects were 400 Indihome customers in Jakarta. The data collection technique was carried out using the customer loyalty scale from Bobalca, et al., The customer satisfaction scale from Grigoroudis and Siskos, the switching barrier scale from Jones, et al., The hedonic value scale constructed by the author. The data analysis technique was carried out using SEM (Structural Equation Model) which processing was carried out using the Lisrel (Linear Structural Relationship) program. The results showed that the effect of switching barriers, hedonic value on customer loyalty with customer satisfaction mediator matched (fit) with empirical data, with NFI value 0.91, NNFI 0.90, CFI 0.92.