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Affiliation(s)

Padjajaran University, Bandung, Indonesia

ABSTRACT

The increase of fixed broadband penetration can increase a country’s economic growth. Indonesian fixed broadband usage density still lags far behind other countries. This condition becomes a great opportunity for operators in marketing fixed broadband products. The different offers and services of each fixed broadband operator in Indonesia will have an impact on the ease of acquiring and maintaining customer loyalty levels. The unstable number of subscribers (unsubscribing/switch to other operator) is increasing year by year. This condition can be caused by customer value perceived by the customer that is inferior because the management of customer relationship management is less good. The method used is descriptive and explanatory. The unit of analysis is the last customer of four broadband operators in Indonesia. Time horizon is cross-sectional, where the research is conducted simultaneously. The survey data are collected from questionnaires to fixed broadband subscribers and through focus group discussions and interviews with managers related to the object study. Data are analyzed descriptively and quantitatively and this research uses quantitative research design using Structural Equation Modeling (SEM). The findings show that the effect of customer relationship management on customer loyalty through customer value is significant.

KEYWORDS

customer relationship management, customer value, customer loyalty, fixed broadband

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