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RESEARCH ARTICLE XXXXXXXXXXXXXXXXX
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Copyright © 2015 American Scientific Publishers Advanced Science Letters
All rights reserved Vol. XXXXXXXXX
Printed in the United States of America
The Role of User Experience Towards Customer Loyalty in Indonesian Cellular Operator
with the Mediating Role of User Satisfaction and Customer-Based Brand Equity
Indira Rachmawati Sumirat,1, Dr. Zurina Mohaedin,2
1School of Economics and Business, Telkom University, Bandung, Indonesia
of 2Graduate School of Business, University Sains Malaysia, Penang, Malaysia
This research focuses its attention to support conceptually the relationship between user experience and customer loyalty in
Indonesian Telecom Industry. This research also has intention to investigate and examine customer-based brand equity and
user satisfaction as the mediating variables. The conceptual framework is the developed from the synthesis of the literature
that related user experience to customer loyalty. The higher of user experience in using their product/service in Telecom
industry can cause the higher of customer loyalty. This phenomenon also can be caused by brand equity and user satisfaction.
This research can enrich the body of knowledge that linking the user experience and customer loyalty which use customer
based brand equity and user experience as the mediating variables in Indonesian Telecom industry from the point of view
operator provider for network, services, application, and moreover from the view of terminate/devices.
Keywords: User experience, Customer loyalty, Customer-based brand equity, User satisfaction, Telco Industry, Indonesia,
Operator Provider, terminate/devices
1. INTRODUCTION
The competition phenomenon in Indonesian industry
has grown rapidly. This condition lead to competition in
order to get a high market share and profit through market
penetration to attract new customer and the ability to
maintain customer loyalty. In addition, The competition is
followed by the increasingly critical customer in
determining which products will be used and it
encourages the company to retain the existing customer.
Since the Indonesia Government changed the pattern
of management in the telecommunications sector in
Indonesia from a monopoly into competition through UU
No.36 of 1999 on Telecommunication, the Indonesian
telecom industry showed rapid growth. This growth was
also accelerated by advances in communications
technology that uses radio frequency spectrum as an
alternative means of telecommunications that were
previously only rely on cable and satellite networks
(Utoyo, 2015).
Recently, one of the fast growing company in
Indonesia is the telecom company. This has implication
for the growing demand of telecom technology in quality
and quantity, which cause the competition in the telecom
industry are becoming increasingly stringent. Moreover,
these conditions led to a price war between telecom
operators that offering the same communication products
and services (www.detik.com, 2015).
The perceived user experience in using a particular
telecommunication and technology, including the internet
and the site referred to as user experience (Garrett, 2011).
The marketeers and telecom practitioners generally
confirmed that the obtained positive user experience with
a product/service or brand will affect customers'
perception of the brand into a more positive direction in
building customer loyalty (Yoo et al., 2000). In addition,
Aaker & Joachimsthaler (2000) stated that experience
gained through participation and engagement of users on
the internet are likely to be arrested stronger than user
experience gained from other conventional media.
Mishra et al. (2014) and Jones (2008) had already
done the research that investigate the relationship
between user experience and customer-based brand
equity. The relationship between brand equity and
customer loyalty had been examined by Taylor (2004).
Furthermore, the relationship between user experience
Adv. Sci. Lett. X, XXX–XXX, 2015 RESEARCH ARTICLE
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and customer loyalty through brand image as a moderator
had already tested by Venkat (2007) and Sirapracha &
Toc q u e r (2012). Besides that, customer loyalty can be
developed through user satisfaction as a mediator
between user experience and customer loyalty (Khan et
al., 2015).
The investigation and examination of the direct
relationship between user experience and customer
loyalty based on the point of view of network, service,
application, and device. Additionally the relationship
between user experience and customer loyalty through
user satisfaction and customer-based brand equity
(CBBE) as the mediators will be the original contribution
from this research.
2. LITERATURE REVIEW
2.1. User Experience
According to Garret (2011), user experience is the
experience of a product or service that is made for
someone to use it in the real world. When products or
services are developed, customers give much attention to
the products or services. Understanding the user
experience is often defined as the achievement of a
product or service that is considered to succeed or fail by
its users.
2.2. Customer Based-Brand Equity (CBBE)
Since the late 1980s, brand equity has been one of the
most important marketing concepts in both academics and
practices. While several different definitions of brand
equity have been offered over the years, many of them are
consistent with brand equity definition as the value added
by the brand to the product (Keller, 2003). This matter is
also supported by Aaker and Joachimsthaler (2000) which
stated that several researchers have proposed approaches
to measuring brand equity, because a key requirement for
managing brand equity is the availability of good
measurement.
Based on the argument from Kotler & Keller (2012),
brand equity becomes important because it can give a
good contribution in competitive profit for the company.
Profitability that is caused by brand equity, for examples:
a brand gives price war defenses in market place, make
easier in brand extension because of high credibility that
has been achieved, ability to become a price maker not a
price taker, generate a strength position in negotiation
with distributor and retailer because of consumers’
demand, ability in controlling promotion fee because of
brand awareness and brand loyalty from consumers.
Customer Based Brand Equity can lead to greater
revenue, lower costs and higher profit, it has direct
implications for the firm’s ability to command higher
prices consumers willingness to seek out new distribution
channels, the effectiveness of marketing communications,
and the success of brand extensions and licensing
opportunities (Keller, 1993).
2.3. User Satisfaction
Zeithmal & Berry (2003) found that feature, user
emotion, attribute, perception, and other users could
develop customer satisfaction. Positive emotions such as
happiness, happy, and happy will increase user
satisfaction. In contrast, negative emotions such as
sadness, grief, regret, and anger can reduce the level of
satisfaction.
Attribute happened when users were surprised by the
results of the service is better or worse than expected, the
user tends to look at the reasons and the assessment of the
reasons they can affect satisfaction. Moreover, user
satisfaction is influenced by others. For example, another
user reactions after use of the product or service. Then the
influence of another user story about the experience of an
event (Sumarwan, 2012).
2.4. Customer Loyalty
Tay lor et al. (2 004) argued that customer lo yal ty
(including behavioral loyalty and attitudinal loyalty) was
positively related to satisfaction, value and resistance to
change, affect, brand trust, and brand equity. In this
research, customer loyalty in Indonesian telecom industry
will the dependent variable that is affected by user
experience as independent variable through user
satisfaction and CBBE as the mediators.
2.5. User Experience and CBBE
Mishra & Dash (2014) conducted the research that aim
to explore the buildup of consumer-based brand equity
(CBBE) from positive derived experiences. Rewarding
experiences with products make a user feel good about
their decision to buy and use it. Those feelings get
accrued as strong consumer– brand relationship,
measured comprehensively by CBBE in marketing
literature.
Jones (2008) found that well-known brand if it does
not give a good performance in meeting the attributes
important to consumers, then the image could degenerate.
The positive experience of the site usable (easy to use)
can strengthen the brand and credibility of the company,
as well as improve communication and relationships
between the company and the customer. If a customer has
a pleasant experience with a site, meaning they have a
positive experience.
2.6. User Experience and User Satisfaction
According to Hutabarat’s research (2014) that can be
seen in Figure 2.3., there is a relationship between user
experience towards satisfaction. The aim of Hutabarat’s
research is to find out the influence of user experience
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related to Path user satisfaction in the city of Bandung on
2014. The result showed that there is the influence of the
user experience to user satisfaction of social networking
Path in Bandung on 2014.
Khan et al. (2015) found that there are positive and
significant influences of customer experience quality
(EXQ) dimensions on consumer behavioral outcomes. It
validates that customer evaluation is not only based on
service encounters, but also includes every touch point
with an organization. Results highlights a significant
impact of customer satisfaction on loyalty and word-of-
mouth, which means that providing pleasurable
experiences to the customer at hotel makes a customer
satisfied as well as generate positive- word-mouth for the
organization.
The indirect effect of customer satisfaction on word-
of-mouth through loyalty shows strong positive
relationship. Thus, a satisfied customer though the
pleasurable and well managed experiences generally
generates positive word-of-mouth about the organization.
2.7. User Experience and User Satisfaction
Tay lor et al. (2 004) co nducte d the research that
examines the effect of brand equity and satisfaction to
customer loyalty. The result revealed that brand equity
and trust were consistently the most important
antecedents to both behavioral and attitudinal forms of
customer loyalty. There is also evidence that the models
underlying the formation of behavioral versus attitudinal
forms of customer loyalty may vary across research
settings. The results suggested that industrial equipment
marketers might consider moving beyond a focus on
satisfaction in relationship marketing strategies toward
integrated strategies that foster brand equity and trust in
their customer base as well.
2.8. User Experience and User Satisfaction
Ve nk a t ( 20 0 7 ) d e ve l op ed a m o de l w h ic h s h ow n t h e
impact of customer experience on customer satisfaction
and brand image a business-to-business context. Survey
data obtained from 140 customers of a leading
manufacturer were analyzed using PLS. Customer
experience was found to have a strong impact on overall
satisfaction, brand image, and loyalty. In addition,
stronger impact on overall satisfaction compared to
attribute-level satisfaction.
The relationship between customer experience,
customer satisfaction, brand image, and customer loyalty
that had been done by Venkat (2007), There are several
differences between this research and Venkat (2007).
Firstly, this research not only examine brand image as one
dimension of brand equity, but examine all of brand
equity dimensions. Secondly, the dimensions of user
experience and user satisfaction in this research will refer
to the context of telecom industry from the elements of
network, services, applications, and terminate/devices.
3. Research Model
H1: User Experience affects significantly towards
Customer-Based Brand Equity.
H2: User Experience affects significantly towards
User Satisfaction.
H3: Customer-Based Brand Equity affects
significantly towards Customer Loyalty.
H4: User Satisfaction affects significantly towards
Customer Loyalty.
H5: Customer-Based Brand Equity mediates
significantly the relationship between User
Experience and Customer Loyalty.
H6: User Satisfaction mediates significantly the
relationship between User Experience and
Customer Loyalty.
H7: User Experience affects significantly towards
Customer Loyalty.
H8: User Satisfaction affects significantly towards
Customer-Based Brand Equity.
H9: User Satisfaction and Customer-Based Brand
Equity mediate significantly the relationship
between User Experience and Customer
Loyalty.
4. Expected Outcomes
1. This research not only examine brand image as
one dimension of brand equity, but examine all of
brand equity dimensions.
2. The dimensions of user experience and user
satisfaction in this research will refer to the
context of Indonesian telecom industry from the
elements of network, services, applications, and
terminate/devices.
3. The investigation and examination direct
relationship between user experience and
customer loyalty.
4. The investigation and examination the
relationship between user experience and
Adv. Sci. Lett. X, XXX–XXX, 2015 RESEARCH ARTICLE
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customer loyalty using user satisfaction and
customer-based brand equity as the mediators.
ACKNOWLEDGMENTS
This work was supported in part by Telko m
University.
REFERENCES
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[2] Www. Detik.com, 2015.
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[4] Yoo, B., Donthu, N., Lee, S. An Examination of Selected
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