Title:
THE EFFECT OF PRODUCT ATTRIBUTE ON CUSTOMER SATISFACTION AND ITS IMPACT ON CUSTOMER LOYALTY OF PT. TELKOMSEL IN BANDA ACEH CITY

Authors:
Novalino Gunale, Permana Honeyta Lubis and Iskandarsyah Madjid ,Indonesia

Abstract:
This study is to analyze the effect of product attributeon customer satisfaction and its impack customer loyalty. The object of this research is the company of Telkomsel in Banda Aceh City. The population in this study is all customers of Telkomsel in Banda Aceh City. Sample is taken using non-probability sampling techniques for customers (consumers) who have purchased Telkomsel products, and it is determined as much as 150 respondents to meet the requirement of Structural Equation Model (SEM). Special for the indirect effect test, this research uses the Sobel test that can provide the significant value for indirect causality test. This research provides the descriptive analysis and verification analysis from previous causality theories. The descriptive analysis uses the mean score of the respondents perception that is collected by questionnaires. The descriptive result proves that product attribute, customer satisfaction, and customer loyalty are the variables in good condition, based on the respondent perceptions. Other than that, the causality test result proves that product attribute has an influence on customer satisfaction, customer satisfaction has an influence on customer loyalty, and product attribute has an influence to customer loyalty.Product attribute also indirectly influences customer loyalty through customer satisfaction of PT. Telkomsel in Banda Aceh. This indicates that customer satisfaction is a mediation variable in this model, and in the type of partial mediation