THE EFFECT OF SERVICE QUALITY, BRAND IMAGE, AND PRICE PERCEPTION ON INDIHOME CUSTOMER LOYALTY

Abstract

This study aims to determine: (1) The effect of service quality on customer loyalty (2) The effect of brand image on customer loyalty. (3) The effect of price perception on customer loyalty. (4) The effect of service quality, brand image, and price perception on IndiHome customer loyalty in Yogyakarta City.
The subjects of this study are residents of Yogyakarta City who have used IndiHome services within the last 6 months. The subjects in this study are IndiHome customers in Yogyakarta City. The sampling technique used in this study is purposive sampling and incidental sampling, with the criteria being IndiHome customers who have used the service for at least 6 months, reside in Yogyakarta City, and are at least 20 years old, with a sample size of 153 respondents. The data collection technique used a questionnaire that had been tested for validity using construct validity and reliability using the Cronbach Alpha formula and composite reliability. The data analysis technique used Structural Equation Modeling (SEM).
The results of the partial hypothesis testing showed that two hypotheses were accepted and one hypothesis was rejected, namely the service quality hypothesis. However, simultaneous hypothesis testing showed that service quality, brand image, and price perception simultaneously had a positive and significant effect on the purchasing decisions of IndiHome users in Yogyakarta City. This is evidenced by the calculated F statistic of 69.474 and a significance value of 0.000, which is less than 0.05 (<0.05). The adjusted R square in this study was 0.597.