The Influence of Brand Image and Service Quality on Customer Value and Its Implications on Customer Satisfaction (Case Study of PT XL Axiata Tbk)

Abstract

In the last five years, the use of Information and Communication Technology (ICT) by households in Indonesia has shown rapid development. The percentage of the population using cellular phones continues to increase, until in 2019 it reached 63.53 percent. In Indonesia, the telecommunications market (voice and data) is contested by several cellular operators, including PT XL Axiata (XL). In the 2014-2018 period, XL's net profit margin showed a declining trend, especially in 2018 the net profit margin was negative. In 2020 the telecommunications operator PT XL Axiata Tbk. recorded a decrease in net income. Based on the financial statements at the end of 2020, the issuer codenamed EXCL recorded a net profit attributable to owners of the parent entity of IDR 371.59 billion, or a decrease of 47.85 percent compared to 2019's profit of IDR 712.57 billion. A decrease in net income directly reduces EXCL's earnings per share. In 2020, EXCL's earnings per share reached IDR 35, down 47.76 percent on an annual basis. In connection with the above, the authors need to conduct a study on customer satisfaction with XL cellular users. This study aims to examine the phenomenon of customer satisfaction, both in terms of brand image, service quality and customer value. The results of this study are expected to be one of the references for cellular in Indonesia, especially PT. XL Axiata Tbk to be able to continuously improve their performance. The type of research used is a research with a conclusive design, which is a type of inference research that aims to test a certain hypothesis, either through in-depth research on a problem (descriptive) or looking for relationships between variables (correlative) between the independent variable and the dependent variable. The results showed that brand image and service quality had a positive and significant effect on customer value. Brand image and customer value have a positive and significant impact on customer satisfaction. Service quality has a positive and insignificant effect on customer satisfaction. The practical implication is that PT PT. XL Axiata Tbk must manage brand image and service quality as the most important factors affecting customer value and manage brand image and customer value as the most important factors affecting customer satisfaction. Keywords: brand image, service quality, customer value and customer satisfaction.