The Effect of Customer Satisfaction, Switching Barriers Mediated by Customer Loyalty to Customer Retention in ISP Industry

DOI

10.2991/978-94-6463-585-0_43How to use a DOI?

Keywords

Internet Service Providers; Customer Satisfaction; Switching Barriers; Customer Loyalty; Customer Retention; Corporate Clients; IT Decision-Makers; Quantitative Methodology; Relationship Management; Competitive Advantage

Abstract

The rapid growth of Internet usage in Indonesia contrasts with a notable decline in sales and market share for one particular Internet Service Provider (ISP). In the fiercely competitive ISP sector, major players such as Biznet, CBN, Linknet, Moratel, and Indonet stand out, among 1341 registered ISPs, many of which do not focus on corporate sales (B2B) but rather on retail (B2C) divisions. This study delves into the crucial factors of customer satisfaction and switching barriers, mediated by customer loyalty, and their collective impact on customer retention within the ISP industry. Given the indispensable role of internet connectivity in contemporary business operations, understanding corporate client behavior is paramount. This research aims to analyze the positive influence of customer satisfaction on customer loyalty, analyze the positive influence of switching barriers on customer loyalty, analyze the positive influence of customer loyalty on customer retention. A comprehensive quantitative approach was employed, with convenience and judgmental sampling techniques to gather data from corporate ISP users, specifically targeting IT decision-makers. A total of 140 questionnaires were distributed. The study reveals the critical importance of addressing impediments to customer churn, given the substantial switching costs and operational disruptions involved. Effective relationship management, characterized by personalized assistance and proactive engagement, emerges as a key factor in nurturing enduring customer relationships. The findings underscore the necessity of prioritizing customer retention strategies to foster competitive advantage and refine marketing strategies tailored to the unique needs of business clients within the ISP landscape. This research not only contributes valuable insights to the academic field but also offers practical guidance for ISPs aiming to enhance service delivery and maintain competitive positioning in a dynamic market.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Cindy Sutanto
AU  - Fiter Abadi
PY  - 2024
DA  - 2024/12/11
TI  - The Effect of Customer Satisfaction, Switching Barriers Mediated by Customer Loyalty to Customer Retention in ISP Industry
BT  - Proceedings of the 5th International Conference on Global Innovation and Trends in Economy 2024 (INCOGITE 2024)
PB  - Atlantis Press
SP  - 643
EP  - 656
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-585-0_43
DO  - 10.2991/978-94-6463-585-0_43
ID  - Sutanto2024
ER  -