The Effect of Service Quality Based on the Core Value of Ethics and Product Quality on Customer Satisfaction and Loyalty in the Indibiz Service at PT. Telekomunikasi Indonesia Witel Sulbagsel

Abstract

Increasing competition in the business internet service industry requires companies not only to provide high-quality products but also to deliver services based on strong organizational values. PT Telekomunikasi Indonesia, through its IndiBiz service, implements the AKHLAK Core Values as the main guideline in delivering services to customers. This study aims to analyze the effect of service quality based on AKHLAK Core Values and product quality on customer satisfaction and customer loyalty toward the IndiBiz service at PT Telekomunikasi Indonesia Witel Sulbagsel. This study employed a quantitative approach using a survey method. Data were collected from 110 active IndiBiz customers in the Witel Sulbagsel area through a questionnaire using a Likert scale. Data analysis was conducted using Partial Least Squares–Structural Equation Modeling (PLS-SEM) with the assistance of SmartPLS software. The results indicate that service quality based on AKHLAK Core Values has a positive and significant effect on customer satisfaction. In addition, product quality also has a positive and significant effect on customer satisfaction. Customer satisfaction is proven to have a positive and significant effect on customer loyalty. Furthermore, service quality based on AKHLAK Core Values and product quality have a direct positive and significant effect on customer loyalty. The mediation test results reveal that customer satisfaction partially mediates the effect of service quality based on AKHLAK Core Values and product quality on customer loyalty. These findings suggest that consistent implementation of AKHLAK Core Values, supported by reliable product quality, can enhance customer satisfaction and foster customer loyalty toward IndiBiz. Therefore, PT Telekomunikasi Indonesia Witel Sulbagsel is encouraged to continuously strengthen the internalization of AKHLAK Core Values in service delivery and to maintain and improve product quality in order to sustain customer satisfaction and loyalty.