Journal of Business, Social and Technology (Bustechno) http://bustechno.ridwaninstitute.co.id/index.php/jbt/issue/current

ELEMENTS THAT CONTRIBUTE TO CUSTOMER SATISFACTION

Aulia Danibrata, Nuno Sutrisno, Gabriel Adinda Vidya Kusuma

Trisakti School of Management, Jakarta

Email: [email protected], [email protected], [email protected]

Abstract

Article Information:

Received:

23-12-2022

Revised:

09-01-2023

Accepted:

23-01-2023

Keywords:

Brand trust; brand equity; social media marketing; brand loyalty.

The telecommunications business situation in Indonesia currently plays an essential role in the national economy. The rapid advancement of technology in Indonesia is increasing, which causes a high need for adequate telecommunication facilities. This telecommunications need aims to support ease in disseminating information and a tool for communicating from one place to another. The essence of this study is to determine the effect of brand trust, brand equity, and social media marketing on brand loyalty among Telkomsel users. The method used is descriptive quantitative and data collection using primary data in the form of a questionnaire. Respondents in this study were individuals who bought the products at least three times in a particular time. The respondents who were determined by the study were 203 sample people. The analysis technique used is Structural Equation Modeling. The results of this study indicate that brand trust and equity affect brand loyalty, while social media marketing has no effect on brand loyalty. As well as with the outbreak of the COVID-19 virus, the spread is only through online surveys, which are less efficient because they need to interact directly with respondents. This study successfully obtained 214 respondents but only 203 valid or usable data.

Introduction

This is also supported by data on internet users in Indonesia, which will reach 212.3 million people in 2021 (Kusnandar, 2021). Based on this data, Indonesia is Asia's third-largest internet user. The high growth of telecommunications in this era shows that the quality of communication media networks is improving and is expected to continue to increase. One of the companies in Indonesia that serves more than 100 million users is Telkomsel. Telkomsel company is under the auspices of PT Telekomunikasi Indonesia Tbk. Telkomsel can attract up to 169.2 million users. Competition also occurs in the telecommunications industry. Apart from Telkomsel, several telecommunications companies in Indonesia, such as Indosat with 60.4 million users, XL with 56.8 million users, and Tri and Smartfren follow with 30.4 million and 13.3 million users, respectively. Data from Databox.

Of the many regions in Indonesia, the region with the most internet users is the island of Java. This is because Java Island has a larger population than other regions in Indonesia. The total number of Telkomsel users in Java is 95.9 million users. The breakdown of Telkomsel users by region on Java Island is 14.5 million in Jakarta, 38.5 million in West Java, and 20 million in Central Java and the Special Region of Yogyakarta. As for East Java, there are around 23 million users, and for Banten, there are around 2 million users.

In total, internet users in Indonesia in 2020 amounted to 196.7 million users, and in 2021 there will be an increase of 15.5% to 212.3 million users (Kotler & Keller, 2016). This shows that the level is improving because more and more residents have started using the internet to carry out their daily activities. With a population of 274.9 million, around 73.7% of Indonesia's population can access the internet. With so many Telkomsel users, Telkomsel's Instagram social media followers with the account name @telkomsel are also affected by 2 million followers. The following most social media followers are Smartfren (@smartfrenworld) with 296 thousand followers, XL (@xlaxiata_tbk) with 225 thousand followers, Indosat (@indosat) and Tri (@triindonesia) with 133 thousand and 116 thousand followers (Gurnelius, 2011).

Based on data from Telkomsel's website, Telkomsel has a variety of products and services to offer, such as prepaid, home internet, digital finance, and entertainment services. Telkomsel's network quality is improving by officially launching 5G services in Indonesia. Thus, this can improve the quality of the company. This study only examines prepaid services that offer SIM card products similar to sympathy, Kartu As, and LOOP. The prepaid Telkomsel is where the user is billed before getting services from Telkomsel (Rusnaeni, Gursida, Sasongko, & Hakim, 2023).

Method

The essence of the research is to determine the effect of brand trust, brand equity, and social media marketing on brand loyalty among consumers or Telkomsel users. Furthermore, the research method used in this research is descriptive quantitative. The data collection technique is to use a questionnaire as a method of collecting primary data.

The criteria for respondents in this study were Indonesian citizens, at least 18 years old, using Telkomsel products for more than one year, and buying products from Telkomsel at least three times within three months. The number of respondents used refers to the sample size guidelines by (Sasongko, Mustafid, & Rusgiyono, 2016), where the number of samples will be drawn from at least 100 to 200 people. Furthermore (Mï¿½ndez-Suï¿½rez, 2021) suggests that the larger the number of samples (above 400), the more sensitive and more difficult it will be to obtain an ideal measure of goodness of fit.

Based on the above, brand trust relates to emotional ties to a product or service. Brand equity is a product value that provides added value, which is reflected in how consumers think and act. Social Media Marketing is a form of marketing to offer products or services through social media channels. Brand loyalty is a form of consumer loyalty to a product that creates a feeling of satisfaction in consuming and awareness in the minds of consumers (Yadav & Rahman, 2018).

Results and Discussion

Table 2 Characteristics of Respondents

Demographic
	Frekuensi	Persentase
Gender
Man	96	47.3
Woman	107	52.7
Age
18-20 years	12	5.9
21-30 years	64	31.5
31-40 years	38	18.7
41-50 years	41	20.2
51-60 years	42	20.7
60+ years	6	3
Last education
Doctorate	1	0.5
Master Degree	23	11.3
Undergraduate glass	122	60.1
SMA/K	57	28.1
Profession
Worker	146	71.9
Not yet working	6	3
Student	27	13.3
Housewife	18	8.9
Retired	6	3
Social Media Sites
Facebook	28	13.8
Instagram	124	61.1
Twitter	8	3.9
YouTube	43	21,2

Structural Equation Modeling is determined by six structural relationships described by six path estimates connecting the four constructs identified in the proposed model, commonly referred to as goodness of fit. Resulting in an adequate degree of conformity with Chi-Square= 618.038, df= 5.328, p= .000 , AGFI= 0.682, GFI= 0.759, NFI= 0.775, TLI= 0.774, RMSEA= 0.146, CFI= 0.8.

Table 3 Discriminant Validity

	SAM	BE	BT	BL
SMM 1	0.973	.000	.000	.000
SMM 2	0.926	.000	.000	.000
SMM 3	0.984	.000	.000	.000
SMM 4	0.947	.000	.000	.000
SMM 5	0.913	.000	.000	.000
SMM 6	1.000	.000	.000	.000
BE 1	.000	0.976	.000	.000
BE 2	.000	1.146	.000	.000
BE 3	.000	1.000	.000	.000
BT 1	.000	.000	1.000	.000
BT 2	.000	.000	0.964	.000
BT 3	.000	.000	1.098	.000
BT 4	.000	.000	1.079	.000
BL 1	.000	.000	.000	1.000
BL 2	.000	.000	.000	0.708
BL 3	.000	.000	.000	1.207
BL4	.000	.000	.000	1.348

The discriminant validity of the measurement model is assessed based on the cross-loading of variable measurements, and it can be seen that each construct indicator is greater than the correlation of other construct indicators (Seo & Park, 2018). Suppose the correlation between the variable and the measurement item is more significant than the measure of other variables. In that case, the latent constructs can predict their block's size better than the other blocks' size.

Table 4 Convergent Validity

Variabel	Indikator	Loading factor	Cut Off	Keterangan
SMM	SMM 1	0.973	0.5	Valid
	SMM 2	0.926	0.5	Valid
	SMM 3	0.984	0.5	Valid
	SMM 4	0.947	0.5	Valid
	SMM 5	0.913	0.5	Valid
	SMM 6	1.000	0.5	Valid
BE	BE 1	0.967	0.5	Valid
	BE 2	1.146	0.5	Valid
	BE 3	1.000	0.5	Valid
BT	BT 1	1.000	0.5	Valid
	BT 2	0.964	0.5	Valid
	BT 3	1.098	0.5	Valid
	BT 4	1.079	0.5	Valid
BL	BL 1	1.000	0.5	Valid
	BL 2	0.708	0.5	Valid
	BL 3	1.207	0.5	Valid
	BL 4	1.348	0.5	Valid

From the concurrent validity table (Zeren & Kara, 2020), it can be seen that all indicators are declared valid because the factor loading value obtained for each indicator is more than 0.5. So the results from this study indicate an ideal and well-used outcome indicator (Nabila, 2020).

Table 5 Reliability Test

Variable	Indikator	Standardized Factor Loading	SFL Quadrat (Persepsi)	Error	Construct Reliability	Variance Extracted
SAM	SMM 1	0.973	0.946	0.215	0.961	0.853
	SMM 2	0.926	0.857	0.302
	SMM 3	0.984	0.968	0.365
	SMM 4	0.947	0.896	0.962
	SMM 5	0.913	0.833	0.388
	SMM 6	1.000	1.000	0.214
	Total	5.743	5.500	2.446
BE	BE 1	0.967	0.935	0.178	0.954	0.828
	BE 2	1.146	1.313	0.116
	BE 3	1.000	1.000	1.000
	Total	3.113	2.248	0.466
BT	BT 1	1.000	1.000	0.239	0.901	0.693
	BT 2	0.964	0.929	0.907
	BT 3	1.098	1.205	0.334
	BT 4	1.079	1.164	0.420
	Total	4.141	4.298	1.900
BL	BL 1	1.000	1.000	0.237	0.961	0.853
	BL 2	0.708	0.501	0.199
	BL 3	1.207	1.456	0.147
	BL 4	1.348	1.817	0.156
	Total	4.263	4.273	0.739
Acceptable Limit					>0.7	>0.5

ï¿½ï¿½ Based on the reliability testing results, construct reliability values were obtained > 0.7, and variance extracted > 0.5. This indicates that all indicators in this study are good and can be used in further research (Taylor, Celuch, & Goodwin, 2004).

Table 6 Direct Effect

ï¿½ï¿½

	Estimate	SE.	CR.	P
BT -> BL	0.256	0.065	3.961	***
BE -> BL	0.433	0.064	6.759	***
SMM -> BL	0.096	0.051	1.893	0.058

Hypothesis testing helps know the truth of each variable and the interrelationships between variables. According to (Suparno & Haryono, 2015), if the critical ratio (CR) is more than 1,967 and the probability value (P) is less than 0.05, then the research hypothesis is accepted, or H01 is rejected. This test is carried out through direct effects, as shown in table 6 (Atulkar, 2020).

In testing the first hypothesis, the effect of Brand Trust on Brand Loyalty is significant and has a positive effect. With a CR of 3,961 > 1,967 and a P value of .000 <0.05, H01 is rejected, and Ha1 is accepted. The conclusion from this test is that there is an effect of Brand Trust on Brand Loyalty for Telkomsel Users (Atulkar, 2020).

In testing the second hypothesis, the effect of Brand Equity on Brand Loyalty is significant and has a positive effect. With a CR of 6,759 > 1,967 and a P value of .000 <0.05, H01 is rejected, and Ha1 is accepted. The conclusion from this test is that there is an effect of Brand Equity on Brand Loyalty for Telkomsel Users.

In testing the third hypothesis, Social Media Marketing on Brand Loyalty, there is no significant positive effect (Srinivasan, Anderson, & Ponnavolu, 2002). With a CR of 1.893 and a P value of 0.058 > 0.05, H01 is accepted, and Ha1 is rejected. This test concludes that there is no effect of Social Media Marketing on Brand Loyalty for Telkomsel Users.

Conclusion

Based on the results of the tests that have been carried out, the results obtained that in the first hypothesis, there is an effect of Brand Trust on Brand Loyalty (Aaker, 1997). The results of this study are under previous studies. In the second hypothesis, there is an effect of Brand Equity on Brand Loyalty. The research results are from previous studies. In the third hypothesis, there is no effect of Social Media Marketing on Brand Loyalty. These results are different from previous studies where there is an effect of Social Media Marketing on Brand Loyalty.

ï¿½One of the reasons is because Social Media Marketing has a gap with Brand Loyalty, in another sense in this era Telkomsel users don't really need social media marketing as a form of loyalty to the brand. Before the rapid development of the digital world, many Telkomsel users used products from Telkomsel. Therefore, the brand awareness level of Telkomsel users is already high and they know quickly without having to search the internet. Penelitian memiliki beberapa keterbatasan. Dalam penelitian ini yang menjadi objek hanya para pengguna dan pengikut media sosial Telkomsel saja dan kurang mendapatkan gambaran keseluruhan karena keterbatasan waktu, biaya, dan tenaga.

As well as with the outbreak of the COVID-19 virus, the spread is only through online surveys, which are less efficient because they need to interact directly with respondents. This study successfully obtained 214 respondents but only 203 valid or usable data.

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Aulia Danibrata, Nuno Sutrisno, Gabriel Adinda Vidya Kusuma (2023)

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