Research on Impacts of Customer’s Satisfaction, Trust, Switching Barriers, and Corporate Image towards Customers Loyalty (Case Study: Telkom Flexi)

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Author(s) Budiarto Subroto | Anita Rahayu
Pages 704-710
Volume 3
Issue 11
Date November, 2014
Keywords customer satisfaction, trust, switching barrier, corporate image, customer’s loyalty
Abstract

As business competition keeps increasing from time to time, it has directed many service providers to have their focus more on customer retention effort rather than acquiring the new ones. Preserving the existing customers only requires approximately one fifth of the marketing budget spent on finding new customers. Moreover, preserving the loyal customer has proven that it could raise the profitability of the company. This research will examine a model about the impact of customer satisfaction, trust, switching barriers, and corporate image toward customer loyalty. The analysis tools used for this research are Structural Equation Modelling (SEM). This research has collected primary data of questionnaires that were distributed to 266 respondents; those who subscribe Post-Paid Flexi, a CDMA base cellular phone service from PT TELKOM. This research was conducted in Bandung. The result of this research indicates that customers’ satisfaction directly affects customers’ loyalty through their trust and corporate image, while the switching barrier has no impact towards customer loyalty although the customer loyalty affects the switching barriers.

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