The Influence of Price, Service Quality, and Brand Image on Customer Loyalty In Telkomsel Products Case study Universitas Muhammadiyah Sumatera Utara students

Abstract

This study aims to analyze the influence of price, service quality, and brand image on customer loyalty of Telkomsel. The background of this research is the intense competition in the Indonesian telecommunications industry which requires operators to maintain customer loyalty. The independent variables in this study are price (X₁), service quality (X₂), and brand image (X₃), while the dependent variable is customer loyalty (Y). This research uses a quantitative approach with a survey method. The research sample consisted of 100 respondents who are Telkomsel service users, selected through purposive sampling technique. Data were collected through an online questionnaire using a 1-5 Likert scale. Data analysis was performed using SPSS software. Instrument tests included validity and reliability tests, while classical assumption tests included normality test, multicollinearity test, and heteroscedasticity test. The results showed that simultaneously, price, service quality, and brand image have a positive and significant effect on customer loyalty. Partially, all three variables also showed a positive and significant effect on customer loyalty. Among these three variables, brand image was found to have the most dominant influence on customer loyalty. The coefficient of determination indicates that most of the variation in customer loyalty can be explained by these three independent variables, while the remainder is explained by other factors outside the study.The conclusion of this study is that price, service quality, and brand image both simultaneously and partially have a positive and significant effect on Telkomsel customer loyalty. The managerial implication of this research is that Telkomsel needs to maintain and improve its service quality and brand image, while maintaining price competitiveness to retain customer loyalty amidst the increasingly competitive telecommunications industry.