The Influence of Customer Relationship M anage ment, Customer Satisfaction and Customer Loyalty towards Cross-Buying Astinet’s Customer

Tatit Hidayati, Yudi Pramudiana, Maya Ariyanti

Abstract

The business environment in the telecommunications sector is changing rapidly. In order to keep growing, telecomoperators are required to conduct business innovation, sort of them by increasing the value of customer. XYZ also supportgovernment’s programs to the telecomunications sector by holding Astinet.Astinet’s customer which perceived to be technologycally updated and big budget, is expected to purchase othertelecommunications services behind Astinet. However, the number of customers who subscribes more than one product is stillsmall. Noting the growing churn rate, coupled with customer satisfaction and loyalty is not better than the industry, it isnecessary to study to improve customer satisfaction and loyaltyto the Astinet’ service that led to the Cross-Buying othertelecommunications services.This study will research the effect of Customer Relationship Management, Customer Satisfaction and Customer Loyaltytoward Cross-Buying in telecommunication product. Because increase in customer value are preferred rather than seeking newcustomers, considering the cost to find new customers 3-5 timesgreater than retain existing customers (Farber and Wycoff,1991).This research is descriptive verification and a quantitative research which took a questionnaire from 406 respondents whowere or had been using Astinet services previously. The data collection is done by distributing questionnaires to Business-to-Business scheme and used Structural Equation Modelling for data analyzed.The results of factor analyses revealed Customer Relationship Management were found to positively affect customersatisfaction. Customer Satisfaction was found to have direct association with customer loyalty and both customer satisfactionand loyalty-influenced cross-buying.

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