The Influence Of Switching Barrier Towards Customer Loyalty Of Xl Axiata Service Operator In Indonesia 2018

Reynaldi Ahmad Juliawan, Erni Martini

Abstract

Abstract Recently communication has become an important part of life and it is inseparable in every daily activities of everyone in this era of information. One of the tools of communication that people nowadays are using is mobile phone. The competition in the telecommunication market is tight, as the market has really saturated. XL Axiata, as one of the players in Indonesian cellular industry is troubled with low and fluctuating customer growth, high churn rate, and low ARPU. In the condition of such a market, XL needs to focus on retaining the existing customers. Therefore, it is necessary to consider the factors that can help XL retain their customers. The objective of this research is to analyze switching barriers and also the influencing factors and their contributions toward customer loyalty. This research uses data from samples from 400 respondents who lives in Indonesia chosen by Purposive Non-Probability Sampling technique. The result revealed that there are two out of three factors of switching barrier that significantly influence customer loyalty, namely Perceived Switching Cost and Attractiveness of Alternatives. The model can predict the influence of switching barrier towards customer loyalty in Indonesia since the R² is 62.4%. Keywords: XL Axiata, switching barrier, customer loyalty, Indonesia

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