The Effect of Product Quality , Service Quality , Customer Value on Customer Satisfaction And Word Of Mouth

This study aims to find out "The Effect of Product Quality, Service Quality, Customer Value on Customer Satisfaction and Promotion of Mouth to Mouth". The population in this study were Telkom customers of IndiHome. This study uses a sample of 150 respondents. The sampling technique was carried out by convenience sampling method. Data analysis uses path analysis. The results of the analysis show that product quality, service quality, customer value have positive effect on the customer satisfaction of Telkom IndiHome, Purwokerto, (2) Service quality has a positive effect on the customer satisfaction and word of mouth


INTRODUCTION
The internet is essential in this era for human needs with various services related to various different fields.It is a very versatile facility which can help in completing many tasks easily and conveniently with a few clicks.Almost everything is now available over internet in this age of advancement of technologies.It is in general practice nowadays for a person to look for a particular solution over there and getting satisfied with the appropriate solution.We can pay your bills online and purchase various items by going through various websites and choosing among a variety of options.One can get information on any particular thing around the world using internet facility.Seeing the internet has become a requirement of some people, therefore the increasing number of internet service companies promote their respective advantages.
PT Telekomunikasi Indonesia, Tbk (Telkom) is one of the largest telecommunications service providers that utilize opportunities the development of internet.The fulfillment of the needs of internet technology is answered with developing various products based fulfillment need of internet access, such as IndiHome, Flexi: telephone service, data, and internetbased fixed wireless CDMA, TelkomNet same Astinet: services Subscribe to internet access with ISDN, TELKOM company focus: digital network which provides telecommunication services multimedia is the development of integrated telephone system, and one of the popular products is IndiHome.
IndiHome is one product of Telkom Group Services that form an integrated package of services in a single package covering triple play communication services, data and entertainment such as home phone, internet (Internet on Fiber or High Speed Internet) and interactive television service with IPTV technology (UseeTV).IndiHome also comes with a variety of additional services (add-on) which can be chosen according to needs and wants of customers such as Phone Mania, seamless, wifi.idTrenMicro Antivirus, IndiHome View (online surveillance camera) and many more.IndiHome have many advantages compared with other providers.Like, fiber optic network capable of transferring data up to 100 Mbps, much faster than the network of copper wires or coaxial cable.Fiber optic networks are much more stable than the network of copper wires or coaxial cable at the time done internet access simultaneously.Fiber optic cable is more resistant to any weather conditions such as lightning attacks and electromagnetic interference than copper wires or coaxial cable.Fiber optic technology is a technology-art and latest data transfers that are used in the fixed broadband service.
Besides benefits IndiHome provided, there are some weaknesses and a lack of IndiHome.Some weakness such as the cable that company used, IndiHome optical fiber used by Telkom is very sensitive and easily damaged if there is a strong physical contact.The other weakness of Indihome is the lack of socialization to the customers in the change rates (rates are subject to change at any time without notice).Tariff increase unexpectedly in time ago.The existence of this weakness resulted in numerous complaints from customers.Customer complaints also occur due to the slowness of the handling of the above disorders IndiHome on customers.IndiHome complaints that occur can influence customer satisfaction.
Indiehome Purwokerto also has a problem as in general is the decrease of sales.Based on last 3 months, PT.Telkom Purwokerto gained a total of 1107 subscribers in February from its initial sales of 1858 in December 2016.
In 2018 IndiHome has already done various strategies to fix the problems.Such as repairing the network and adding service offices to speed up the repair of the problem.But there is no evidence how this repairment will affect customer satisfaction.Telkom has also run system FUP (Fair Usage Policy) in the case of tariff increase unexpectedly.To win the competition internet service provider, companies must be able to give satisfaction to its customers.When customers feel the results are comparable or more than expected customers will be satisfied, and if customers feel the results did not match with the expectation then the customer is not satisfied.
To satisfy customers, a company must provide a product that could be the attraction for consumers.The product has good quality if consumers of the product itself were satisfied.From the statement can be inferred through the manufacturer says if his products have good quality but not yet able to meet the expectations of customers, then the quality of the product from the manufacturer is considered low.In other words, a product is said to have a good/bad quality based on the viewpoint of consumers, not producers.The relationship between product quality with customer satisfaction delivered by Zeithaml and Bitner (2000:76) which states that product or service features by the perception of quality are an important predictor of customer satisfaction.
Companies should also pay attention to the quality of services provided to consumers.
Research conducted by Margareth (2014) says that the service quality is a priority that must considered by companies of telecommunications service providers in order to improve customer satisfaction.The quality of service had a positive influence towards customer satisfaction.According to Kotler (2007:273), the quality of service should start from the needs of the customer and ends with the customer satisfaction and positive perception of the quality of service.A service of a company can be said to be of high quality if the service is able to meet the needs and desires of its customers so customers feel satisfied.
If the company already provides good products quality and services quality then the customers will get a good customer value.Customer value is the customer perception of the balance between the benefits received by the sacrifice given for getting these benefits (Buttle, 2007:31) When a product is in accordance with what is expected or desired consumers with regard to the benefits received, then the consumer will feel satisfied.This will give rise to an advantage for companies because consumers would use the products or services of the company, recommended to other people, and convey positive things (positive word of mouth) about the company and the product or service to others.
Three factors above are very essential for companies to improve customer satisfaction.Customer satisfaction are not only beneficial for company, they also can function as marketers that can recommend the company's product to their closest people or those who need information.It is commonly called WOM (Word of Mouth).The research conducted by (Luis et al, 2008: 403) suggests that word of mouth can be measured using satisfaction felt by customers that can make customers recommend the company's product and extend positive reference to family, colleague, and other people about the company.Word of mouth is a great personal or non personal statement submitted by customers on the other person, a friend and colleague who is not a service provider (Tjiptono, 2008:90).As for (Griffin, 2002:130) argue that word of mouth is the most powerful line for businesses to get new customers.Word of mouth is also influenced by three factors such as product quality, service quality and customer value.If the three factors can be improved by the company then a positive word of mouth will occur.This can be proved by previous research.(Irwanto et al, 2011) stating that product quality, service quality and customer value has a positive and significant effect to customer satisfaction and word of mouth.

Word of mouth
According to Kotler (2005: 615) Word of Mouth communication is personal communication about a product between the buyers and their neighbors, friends, family, and colleagues.According to by Saptaningsih (2008: 1), our society is "mouth" society which means that they use their mouth to communicate more than their hand to write and their eyes to read.According to (Heskett et al, 1994) and(Treiblemaier, 2006), loyal customer tends to recommend one online service provider to other customers.Based on definition above it can be inferred that the word of mouth is the product information that is transmitted from one person to another person.So it could be interpreted that WOM is a information sent or distributed through individual to individual even more.In this case indihome customers recommend products and services to non-customers in order to use the indihome.

Customer Satisfaction
A growing number of manufacturers involved in the fulfillment of consumer needs and desires lead to every company should pay attention to customer satisfaction as a primary objective.According to (Tjiptono, 2012:24) customer satisfaction is someone's feelings after comparing levels of performance (or results) are perceived as compared to his expectations.Some opinions on the definition of customer satisfaction, satisfaction is an assessment regarding the characteristics or the specialty products or services, or the products themselves, which provide consumer enjoyment level related to the fulfillment of the needs consumer consumption.According to (Kotler, 2002:42) Consumer satisfaction is the feeling of pleasure or disappointment of someone who derives from the comparison between his impression on the performance or results of a product and its expectations.Can be explained in further detail that consumer satisfaction is a function of how close consumer expectations of a product with the perceived performance of the product, once they acquire and use them.The overall customer satisfaction will ultimately be negative effect on customer complaints and positive effect on customer loyalty.Because the customer is the person who receives the results of the work of the person or company, then they can determine or assess the quality and they are able to convey what and how their needs.Consumer dissatisfaction is one of the factors that could cause the consumer switch brands.Consumer satisfaction is a function of how close consumer expectations of a product with the perceived performance of the product.Customer satisfaction is one of the main elements in any effort to retain existing consumers or to attract new consumers.According to (Kotler, 2002:44) consumer satisfaction is a feeling happy or pissed off someone who comes from a comparison between the effects of the performance (or product) and against expectations.(Tjiptono, 2006:349) satisfaction is a happy or upset someone who comes from the comparison of the effect on performance of a product and the expectation.Simply satisfaction is defined as "the efforts of the fulfillment of something" or "sufficient" to make something (Tjiptono and Chandra, 2007:195).

Customer Value
According to (Scott and Brand, 2001: 27), "Value is determined on the customer's terms in the context of his or her unique needs".According to that definition, each customer has its own terminology of a bid value, in which the value can meet the specific needs of the customer.By understanding their needs, the company can meet the customer intended value and thereby encourage them to continue purchasing the company product.(Kotler, 2005:68), stating that "Customer value is the difference between the evaluation of the prospects for all benefits and all the costs of a particular bid and other alternatives that are well thought out."The definitions expressed Kotler indicates that the customer value concerning the benefits and sacrifices, then the customer will compare the earnings from benefits and sacrifices made.When the perceived benefits greater than the sacrifice then most likely he will choose the value of the offer, and so any contrast when the perceived benefits less of a sacrifice that is done then the customers will leave the offer of the company.Based on theory above it can be inferred that the customer value is the The difference between what a customer gets from a product, and what he or she has to give in order to get it.Marketer can escalate customers' offering value by improving benefit and decreasing the cost, improving benefit more than the increase in cost, decreasing the benefit smaller than decreasing the cost.

Service Quality
According to (Lupioyadi, 2008:181), Service quality is a factor in determining the success and quality of the company where the company's ability to provide quality service to consumers and as a strategy to defend themselves and achieve success in the face of competition.According to (Nasution, 2004:47), Service quality is the expected level of excellence and control over the level of excellence to meet customer desires.One of service quality approaches, which become reference in many studies is SERVQUAL (Service Quality) model developed by Parasurman, Zeithmal and Berry.SERVQUAL is established on two factors i.e. customers' perception on the actual service they receive and the expected service.Service Quality is defined as the difference between the reality and customers' expectation on the service they receive (Parasuraman et al, 1985).Based on the explanation above, service quality is the perception of customers about the service their received compare with their expectation about the service itself.So, the quality most determined by customers, because customers are the ones who experience the quality provided by company and directly make thoughts about the service itself.It means, it is very critical for company to really understand well about customers needs and wants in order to meet customer satisfaction that will lead to the next behavioral intentions.

Product Quality
According to (Kotler, 2002: 267) product quality is the ability to demonstrate a product in its function, such as the overall durability, reliability, accuracy, ease of operation and repair products are also other product attributes.(Mowen and Minor, 2002: 90) states that the quality of the products the customer is defined as a comprehensive evaluation of the goodness of the performance of goods or services".(Kotler, 2002: 272) states that "The product quality is characteristic of a product or service that relies on its ability to satisfy customers' needs are expressed or implied.According to (Kotler and Armstrong, 2003:243) product quality is one of the most reliable factor by a marketer in marketing a product.Therefore Improve the quality of products or services is an important challenge for the company in competing in global markets.Improvements to product quality will reduce costs and increase competitive advantage, even further, high quality products create lasting competitive advantage.Quality of attributes or properties as described in the products and services concerned.The quality is usually associated with a benefit or usefulness and functions of a product.Quality is a factor that exists in a product that causes the product to be of value in accordance with the intent for what the product is produced.Quality is determined by a set of uses or functions, including endurance, reliance on other products or components, exclusive, comfort, outward form (colors, shapes, wrappings and so on).Quality has an important role both of consumers free to choose the quality level or from producers who are starting to pay attention to quality control in order to maintain and expand the reach of marketing.

METHODS
Respondents are divided into age, gender, occupation and income.Age for responden 15-20 years with a total of 11 people or 7.3%.The other respondent is > 26 years with total of 42 people or 28 %.According to the data above, it can be concluded that majority of respondents are in the age 21 -24 with 97 people or 64.7 percent and the majority of them choose netizen packages.This indicates that the majority of IndiHome users aged relatively young, because they tend to using internet every day and this activity does not cost much and still affordable if they choose netizen packages.Besides that, customers in that age are more up to date about internet.majority of respondents are male of 66 %, while the female respondents are 34 %.The different result of this data is very significant between male and female respondent.Generally, interest in using internet is not very influential from gender.With various activities on the internet, every activity can be enjoyed by both men and women.However, the dominance of male respondents in this study occurred because basically, men tend to spend the time to surf the internet..The profession as employee are 27 people or 18 %.Entrepreneur are 15 people or 10 %.Civil Servant are 6 people or 4 %.And the profession as students is on the highest number of 102 people 68%.It indicates that the respondents with the students' occupation prefer to using internet services on IndiHome Purwokerto.Students like to spend their time with the internet to do tasks, surf the social media or play games online, with good connection of internet.Majority of respondents have monthly income between more than Rp 1 million to Rp 2 million per month which is 48.7 percent.This is consistent with the characteristics based occupation, where the majority of respondents are students.Generally, the students in this study had an income of 1-2 million/month.This condition also shows that IndiHome Purwokerto is one of the internet providers that are in demand by the middle economic class.

Validity And Reliability
Based on validity test output of product quality (X1), service quality (X2), customer value (X3), consumer satisfaction (Y1) and word of mouth (Y2) in Appendix 3, so it can be summarized as shown in Table 2 to Table 6.

RESULTS AND DISCUSSION
The Effect of Product Quality on Consumer Satisfaction Based on the results stated, product quality has a positive effect on customer satisfaction.This causal relationship can be explained that the better the level of customer perception related to indihome purwokerto product quality, the higher the customer satisfaction.This means that better, longer-lasting, and attractive product quality will increase customer satisfaction.The results are consistent with previous studies conducted by Evawati (2012) and Wedarini (2012) which show that product quality has a positive and significant effect on customer satisfaction and quality products have been considered as one of the most important aspects in customer evaluation of customer satisfaction.

The Effect of Service Quality on Customer Satisfaction
Findings from this study found that there is a positive effect of service quality on customer satisfaction.This causal relationship can be explained that the better the level of customer perception related to IndiHome Purwokerto service quality, the higher the customer satisfaction.This result is consistent with research by (Utami and Oetomo 2015) and (Gloria 2011) which states that service quality has a positive and significant effect on customer satisfaction.

The Effect of Customer Value on Customer Satisfaction
The results of this study prove that there is a positive influence of customer value on customer satisfaction.This causal relationship can be explained that the better the level of customer perception related to IndiHome Purwokerto customer value, the higher the customer satisfaction.The results of this study are consistent with (Tinik 2013) which states that customer value is important for generating customer satisfaction, especially for companies engaged in the service sector.And also based on research (Arslan 2009), it was found that customer value has a positive effect on customer satisfaction, it can be stated that customer value can substantively be beneficial in terms of determining the amount of customer satisfaction in the company.

The Effect of Consumer Satisfaction on Word Of Mouth
Current study found that consumer satisfaction has a positive and significant effect on word of mouth.This result means that the higher level of consumer satisfaction, so the higher level of positive word of mouth.Result within study is consistent with the previous study conducted by Luis et al., (2008) who proved that customer satisfaction has positive effect on word of mouth and can make customers recommend the company's product and extend positive reference to family, colleague, and other people about the company.

The Effect of Product Quality on Word Of Mouth
Statistically, current study proves that product quality has positive and significant effect on word of mouth at IndiHome Purwokerto.It means that the better perception by customers related to the product quality, then the higher level of word of mouth at IndiHome.This causal relationship is reasonable because the customer of IndiHome has good judgment related to the experience of performance of the product.The value of the product is received, so that the level of product quality higher and lead to the satisfaction of consumers and cause a word of mouth.This research finding is consistent with the study conducted by (Puspasari 2014), it can be expected that product quality have a positive effect on word of mouth.And it has been stated that overall product quality are quite significant factors in terms of word of mouth.

The Effect of Service Quality on Word Of Mouth
The result of this study found that the service quality has a positive effect on word of mouth.This causal relationship can be explained that the better level of service quality at IndiHome Purwokerto, then the higher level of intention to word of mouth.It proved that when company develop a good service,will affected the customers' future behavior such as word of mouth.Theoretically, this study result is supported by the study according to (Agung 2015) state that service quality has a positive effect on word of mouth, the impact of perceived service quality on preference word of mouth is considerably strong leading to a more favorable disposition towards the service provider and increased commitment to repurchase.

The Effect of Customer Value on Word Of Mouth
Statistically, finding of this research shows that customer value has positive and significant effect on word of mouth at IndiHome Purwokerto.It means that the better of customer value, then the higher level of customer word of mouth at IndiHome Purwokerto.This research is in line with previous research by (Sihaloho 2012) which states that customer value has a positive effect on word of mouth, concluding that the value obtained will affect the level of customer satisfaction which leads to the creation of word of mouth.

CONCLUSION
The results of the analysis show that: (1) Product quality has a positive effect on the customer satisfaction of Telkom IndiHome, Purwokerto, (2) Service quality has a positive effect on the customer satisfaction of Telkom IndiHome, Purwokerto, (4) Customer satisfaction has a positive effect on word of mouth Telkom IndiHome, Purwokerto, (5) Product quality has a positive effect on word of mouth Telkom IndiHome, Purwokerto, (6) Service quality has a positive effect on word of mouth Telkom IndiHome, Purwokerto, (7) Customer value of has a positive effect on word of mouth Telkom IndiHome, Purwokerto.

IMPLICATIONS
In order to keep and improve product quality, IndiHome Purwokerto can make some improvements to the internet network connection to make it more stable and less frequent.The features are good but must be added based on the needs of the users and improve the ease of using these products so that consumers feel comfortable when using IndiHome product.Network resilience in all situations should also be improved so that users can use when the weather is not good.And offering the products and services with affordable and competitive price.IndiHome Purwokerto must keepmaintain and improve service quality like, conduct employee training in accordance with its placement, such as in the IT service so the skills of employees who have attended the training can be appropriate and applied properly.
In addition employees must also have a strong desire to provide the best service to consumers since the first contact, always giving the best performance to consumers fairly according to their needs, desires and expectations, so that it can affect the level of customer satisfaction and word of mouth.In order to improve the customer value even better, IndiHome needs to consider the tariffs for use and continuously increase product and service quality.In addition, IndiHome can do some innovations in the field of promotion, for example by holding discounts for their products on certain special days or dates, and providing special promotions to users who have been using IndiHome products for a long time.
Further researchers need to extend studies and develop the research model by changing the research object other than the internet provider.The variables in this research are applicable for service quality industry, such as a cafe, hotel and many more.For future research also need to develop a wider study object to produce the better result of study more generally and objectively.Using either reference journals and literature to be more complete and that further research about customer satisfaction can be developed.Future research should add more variables such as price, brand image and many more.