THE EFFECT OF PRICING, PRODUCT QUALITY, AND WORD OF MOUTH ON CUSTOMER LOYALTY OF CELLULAR CARD USERS: THE MEDIATING ROLE OF CUSTOMER SATISFACTION IN TULUNGAGUNG REGENCY

Abstract

The rapid growth of the telecommunications industry has intensified competition among cellular service providers, requiring companies to develop effective strategies to maintain customer loyalty. This study examines the effects of pricing, product quality, and word of mouth on customer loyalty among cellular card users in Tulungagung Regency, with customer satisfaction serving as a mediating variable. A quantitative research approach was employed using survey data collected from 100 respondents who were users of Telkomsel and XL cellular cards aged between 21 and 30 years. Respondents were selected using purposive sampling techniques. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4.0 software. The findings indicate that pricing has a significant positive effect on customer loyalty, while product quality and word of mouth do not directly influence customer loyalty. Customer satisfaction significantly affects customer loyalty and serves as an important mediating variable in the relationship between marketing factors and customer loyalty. The results suggest that telecommunications providers should focus on offering competitive pricing strategies and enhancing customer satisfaction to strengthen customer loyalty. These findings contribute to the marketing literature by providing empirical evidence regarding customer behavior in Indonesia's telecommunications industry.