Research Paper Marketing - Structural Equation Modeling (SEM)

In marketing, there is no doubt that customer loyalty is important. Marketing will always try to to keep their customers up to the last, or forever, if possible. Therefore, this study attempts to test factors that influence customer loyalty. Projection factors are: quality of service, product quality, price, switching costs and customer satisfaction. For more information on these variables were collected through interviews with 135 respondents to the questionnaire. The data were then were analyzed using a structural equation modeling (SEM) method.

Research Paper Marketing - Structural Equation Modeling (SEM)

With the SEM method to test the hypothesis, the result shows that the quality of service have a positive impact on customer satisfaction, product quality has a positive impact on customers satisfaction, having a positive impact on customer satisfaction, customer satisfaction has a positive impact on the costs of switching, the switching cost have a positive impact on customer loyalty. There are some effects that could be proposed for this loyalty research, can be increased by increasing customer satisfaction and switching costs, ie: to formulate a competitive price appropriate for the service and quality products and victims of the customer, product improvement quality by improving physical performance by expanding the service area by adding more BTS to provide a stronger signal, add more distribution agents. Service quality can be improved by being more responsive and provide faster service, the generation of improved technology to better support quality, accuracy, service and faster processing, so they can provide customer-oriented services. Increase the cost of switching can be done by extending the coverage of area, where some additional services to simplify the new account number and registration to participate in the another company from another installation for the provider customer.