The Influence of Relational Marketing and Brand Image on Customer Trust of the Mobile Telecommunications Services Operators in Indonesia

By Hikmawati, Nina Kurnia | Academy of Strategic Management Journal, January 6, 2016 | Go to article overview

The Influence of Relational Marketing and Brand Image on Customer Trust of the Mobile Telecommunications Services Operators in Indonesia


Hikmawati, Nina Kurnia, Academy of Strategic Management Journal


INTRODUCTION

The industry of mobile telecommunications services in Indonesia, recorded strong growth supported by the development of communications technology industry and the market share of mobile phone services. The market conditions on mobile telecommunications services increasingly shifted towards market competition, with an indication of the increasing number of companies and cellular phone service subscribers continues to increase.

The number of growth in telecommunication subscribers in Indonesia has increased rapidly. In the last eleven years the number of mobile subscriptions increased by 410% between 2005 and 2015. The number of telecom subscribers in Indonesia continues to increase significantly. In 2005 subscribers reached 60.39 million, while in 2014 increased to 339,22 million, and increased again in 2015. From that amount, the most are subscriber of Telkomsel, Excelcomindo Axiata, and Indosat.

The prospects for the mobile communications business continues to increase have a huge influence for corporate telecommunications services in Indonesia. The presence of the top ten mobile operators lead to increasingly fierce competition in the mobile telecommunications industry, particularly in a variety of mobile telecommunications products and services are increasingly diverse. Mobile operators are not only relying on product and price alone, but also to create added value which can be enjoyed by customers in accordance with customer wants and needs. Each mobile operator seeks to create creations and innovations of the new features that customers remain loyal. The problems that face mobile operator is always faced with the threat of the products or similar commodities from other companies, which will easily enter the market by providing products or services to customers better and faster.

Operator's ability to exist in a very tight competitive environment that requires the company to win the competition and strive constantly to understand the needs or desires of customers, increasing the number of customers, providing satisfaction to customers, and capture the business opportunities that exist. Business competition in the telecommunications sector resulted in companies that innovate slowly decreased the number of subscribers is large enough. Up and down the number of customers becomes often affects the mobile telecommunication industry. For example PT. Indosat, the second largest mobile operator in Indonesia has recorded a decrease in the number of customers in the first quarter of 2013 by 4.4% compared to the last quarter of 2012. PT. Indosat in the first quarter of 2013 recorded a subscriber base of 55.9 million, down 4.4% compared to the fourth quarter of 2012, which recorded 58.5 million subscribers.

Marketing in the telecommunications business today is very complex, thus, a new approach to manage customer care or customer retention becomes very important in order for the consumer can be loyal to the products and company services. In order to maintain customer achievement and continue increasing the number of customers it takes great confidence of customers for telecommunication service providers. Customer trust is very important role in the relationship, particularly in service businesses that are full of uncertainties, risks and a lack of information among the parties that are interconnected. This is because in a service business, the company promises on the purchase of products that could not be seen (invisibility product), which consumers are required to pay before the benefit.

According to Jasfar (2005), trust can serve as a means of adhesives and tolerance between the company and its customers. Trust as an adhesive that allows the company to trust others to organize and use resources effectively in creating added value and the like to the party's concerned (stakeholders). Trust built up, including trusting others will cause a high trust and ability and his desire to fulfill the promise of explicit and implicit. …

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