Scientium Management Review

ISSN : 2962-8328
E-ISSN : 2962-6323
Pp : 197-210
Volume 1 No 3. 2022

ANALYSIS OF THE INFLUENCE OF SERVICE QUALITY AND PRODUCT QUALITY ON

WIFI ID CUSTOMER SATISFACTION AT PT. TELKOM INDONESIA REGIONAL 7

Muhammad Abul Hasan Dhafry Rusli Mullare 1 *, Djabir Hamzah 2 , Wahda 3

1 Master of Management, Faculty of Economics and Business, Hasanuddin University;

[email protected]
2 Faculty of Economics and Business, Hasanuddin University
3 Faculty of Economics and Business, Hasanuddin University

Abstract
This study aims to determine the effect of service quality on customer satisfaction;
product quality on customer satisfaction; service quality and product quality on customer
satisfaction Wifi Id at PT. Telkom Indonesia Regional 7. This research is a quantitative
research with a causal associative approach, that aims to determine the effect of two or more
variables. This research conducted at PT. Telkom Indonesia Regional 7, by taking a sample,
namely Wifi Id customers, totaling 352 respondents. Data collection techniques using
observation techniques, interviews, questionnaires and literature study. The data were
analyzed using validity tests, reliability tests and multiple linear regression analysis. The
results of the study show that service quality has a positive and significant effect on customer
satisfaction. Product quality has a positive and significant effect on customer satisfaction.
Service quality and product quality have a positive and significant effect on customer
satisfaction at PT. Telkom Indonesia Regional 7.

Keywords: service quality, product quality, customer satisfaction

A. INTRODUCTION

The cellular business market in Indonesia seems very promising indeed, it's
no wonder that the cellular business actors are so aggressive in fighting over the
market. Moreover, the consumptive lifestyle of the Indonesian people is an indicator
of the attractiveness of this business. Developments in communication technology as
well as the increasing number of providers in Indonesia have made competition
among cellular operators increasingly tight, especially with the internet. The people's
need for an internet connection continues to grow which drives a lifestyle to enjoy
high speed internet in all locations. Cellular network and fixbroad band have not been
able to meet the public's need for high speed mobile broadband. So we need a
technology that can accommodate these needs.
Telkom Group has products capable of providing high-speed internet services
through Indihome and Wifi.id. However, these two products have limited coverage
and production costs, so a solution is needed to increase the coverage area that can
serve the internet needs of the community along with efficient production costs.
Wifi.id is a product that has the potential to increase its coverage area due to the

Scientium Management Review Vol. 1 no. 3. 2022 197

location of the device in a public place, and modifications can be made to increase the
coverage area and simplify the topology so that it can meet the needs of high speed
mobile broadband with low production costs. The realization of this can increase
Telkom's revenue through monetizing Wifi Id products (Wifi Id Plus Annual Report,
2021).
The development of cellular technology in providing internet services with
higher speed with wide coverage will have an impact on the intense competition for
high speed mobile broadband technology. Wifi Id product development begins with
a customer survey to determine the validity of the data for the community's internet
needs. Based on the survey results, product development research will be carried out
through device modifications and topology changes so as to maximize the potential
of access point devices used in Wifi Id products. Then a product trial was carried out
to determine the feasibility level of the Wifi Id product. Based on the results of the
trial, an evaluation was carried out followed by planning a Wifi Id monetizing scheme.
Then the implementation is carried out in stages accompanied by Wifi Id
socialization.
The people's need for an internet connection continues to grow which drives a
lifestyle to enjoy high speed internet in all places. Cellular networks and fixed
broadband have not been able to meet the public's need for high speed mobile
broadband. So we need a technology that can accommodate these needs through the
development of Telkom's current product, Wifi Id, which has the potential to increase
coverage area through an efficient network topology. Optimizing Wifi Id technology
by applying new technology that can efficiently increase the coverage area of existing
infrastructure so that Wifi Id can be enjoyed mobile. Wifi Id is a network provider for
people who want high-speed internet on a mobile basis (Wifi Id Plus Annual Report,
2021).
Customer satisfaction is one of the things that has an important role in
increasing sales volume because customer satisfaction is a major milestone in the
success of a company. Customer satisfaction is an illustration of the difference
between what the customer previously expected and the performance received. If
expectations are high, while performance is mediocre, then satisfaction will not be
realized so that it will cause disappointment in the minds of customers (Priansa,
2017). Kotler (2010) mentions that there are four measurements of customer
satisfaction, namely: (1) Buy back, where the customer will return to the company to
look for goods or services (Re Purchase), (2) Customers will say good things about
the company to other people (Word-of-Mouth), (3) Customers will pay less attention
to brands and advertisements from competing products (creating a brand image), (4)
Making purchasing decisions at the same company (Buying other products from the
same company).

Based on Wifi Id customer growth data at PT. Telkom Indonesia Regional 7 in

Makassar, that the growth of Wifi Id customers in Makassar City is quite significant,
as evidenced since 2017 there were 1,914 Wifi Id customers, in 2018 it increased to
2,551 customers or an increase of 33%, then in 2019 it increased to as many as 3,184
customers or an increase of 25% compared to the previous year. In 2020 there were
4,646 Wifi Id customers, up 46% compared to 2019 and in the 3rd quarter of 2021 it
decreased to 3,833 or down 17% compared to the previous year.

198 Scientium Management Review Vol. 1 no. 3. 2022

 Customer satisfaction is not just easy to build, but requires a long process, one
of which is to create or provide quality products that meet customer needs. In line
with the theory put forward by Kotler (2010) found that customer satisfaction is the
level of one's feelings after comparing product performance or results that he feels
with his expectations. Product quality concerns the physical condition, function, and
product characteristics that meet customer needs in the form of tastes and
expectations for the product compared to the value of money that customers are
willing to spend to obtain the product (Fauzi and Mandala, 2019).
According to Hidayat (2009), product quality is a determining factor in
customer satisfaction after purchasing and using a product. Product quality is a form
of complex satisfaction value. With good product quality, the desires and needs of
customers for a product will be fulfilled. If the product quality received is higher than
expected, then the perceived product quality will be satisfactory. Research conducted
by Japarianto, et al (2007) found that product quality affects customer satisfaction or
dissatisfaction which will have an impact on customer loyalty.
Another thing that is the main consideration for customers besides product
quality is service quality. In line with the theory put forward by Kotler and Armstrong
(2012: 27) which says product quality is the ability of a product to carry out its
functions, including reliability, durability, accuracy, ease of operation, and product
repair, as well as other valuable attributes. This according to Kotler (2010) is in line
with the theory which states that service quality is a form of customer assessment of
the level of service received with the level of service expected.
According to Tjiptono (2015) in Krisdianti and Sunarti (2019) service quality
is the level of quality expected by customers to fulfill customer desires, if customers
feel the service or service they receive can fulfill what is expected or even exceed their
expectations, then the quality of the service or service is perceived as good, excellent
and satisfying. Conversely, if the service or services provided to customers are unable
to meet what customers expect, then the quality of the service is perceived as bad.
According to Kotler and Keller (2014) there are five main indicators of service
quality, namely: (1) Tangible, (2) Reliability, (3) Responsiveness, (4) Assurance, (5)
Empathy.

Furthermore, it was stated that in addition to service quality that can affect
customer satisfaction, it is also product quality according to the theory put forward
by Kotler and Armstrong (2012). Product quality is something that needs special
attention from companies or manufacturers, considering that product quality is
closely related to customer satisfaction issues, which is the goal of marketing
activities carried out by a company. According to Tjiptono (2013) in Afnina and
Hastuti (2018) product quality is an effort to meet or exceed customer expectations
where quality includes products, services, people, processes, and the environment.
Quality is a state of constant change (what is considered quality today may be
perceived as less quality in the future). According to Tjiptono et. al (2012) in Putro
(2014) there are eight product quality indicators, namely: (1) performance, (2)
product features, (3) reliability, (4) compliance with specifications, (5) durability,
(6) ability to repaired, (7) aesthetics, (8) perceived quality.

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B. LITERATURE REVIEW

Service Quality on Customer Satisfaction

Service quality is very important for companies because it will attract customers
to buy the products offered. According to Kotler (2010) service quality is a form of
customer assessment of the level of service received and the level of service expected.
If the service received or perceived is as expected, then the quality of service is
perceived as good and satisfactory. Service quality that meets customer expectations
will create a sense of satisfaction in customers, this satisfaction results in customers
deciding to continue buying the products offered. If the quality of service provides
something that is in accordance with the customer's perception, the higher the
satisfaction felt by the customer. Arokiasamy and Abdullah (2013) conducted
research on telecommunication providers. This is in line with research conducted by
Roselina and Niati (2019) which stated that there is a significant effect of service
quality on customer satisfaction. Based on the description above, the hypothesis
proposed is:
H1: Service quality has a positive and significant effect on customer satisfaction.

Product Quality On Customer Satisfaction

One of the main factors that must be considered by the company is product
quality where customers will be satisfied if the results of their evaluation show that
the products they use are of high quality. So the better the quality of the product, the
higher the satisfaction felt by the customer. Product quality is defined as something
that can be offered to the market to be noticed, owned, used, or consumed so as to
satisfy a want or need (Kotler, 2010: 280). According to Selnes (1993) in Jonson
(2006) customer satisfaction is very dependent on how the quality level of the
product offered. Therefore product performance as perceived by customers affects
customer satisfaction. This is in line with research conducted by Afnina and Hastuti
(2018) and Maulidah et al., (2019) which state that there is a fairly strong and
positive relationship between product quality and customer satisfaction. In addition,
it was also found that product quality has a significant influence on customer
satisfaction. Based on the description above, the hypothesis proposed is:

H2: Product quality has a positive and significant effect on customer satisfaction.

Service Quality and Product Quality On Customer Satisfaction

Laksana, (2008), service is any action or activity that can be offered by one party
to another, which is basically intangible resulting in any ownership. Service quality
reflects a comparison between the level of service delivered by the company
compared to customer expectations. Service quality is built on a comparison of two
main factors, namely customer perceptions or the service they actually receive with
the service they actually expect (Tjiptono and Chandra, 2019). This shows that the
level of service provided to customers has a considerable impact on customer
satisfaction, but services that are less than optimal will reduce the level of customer

200 Scientium Management Review Vol. 1 no. 3. 2022

satisfaction, meaning inconvenience to customers. Kotler and Armstrong (2012: 347)
state that product quality is a product's ability to perform its functions, namely
reliability, durability, performance, convenience and other attributes. If all
capabilities can be implemented by the company, then the company can increase the
level of sales and can satisfy its customers. This is supported by research by
Kusumawathi et al., (2019) which states that there is a significant effect between
product quality and service quality on customer satisfaction. Based on this
description, the hypothesis proposed is:
H3: Service Quality and Product quality has a positive and significant effect on
customer satisfaction.
Conceptual Model
This study discusses the effect of service quality (X1) and product quality (X2)
as independent variables, on customer satisfaction (Y) as the dependent variable.
According to Tjiptono & Chandra (2019: 59) service quality is the level of excellence
expected and control over that level of excellence to fulfill customer desires. Product
quality according to Tjiptono (2014: 95) is everything that is offered by producers to
be noticed, requested, purchased, consumed by the market as fulfilling the needs or
desires of the relevant market. Customer satisfaction is a person's feelings of pleasure
and disappointment that arise after comparing the performance (results) of the
product that is thought of against the expected performance (Kotler & Keller, 2014:
177).

Based on the description above related to this research variable, the

conceptual framework can be shown in the following figure:

Figure 1. Conceptual Framework

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C. RESEARCH METHOD

Research Design and Location

The design of this research is causal associative research using a quantitative
approach. Causal associative research is a research that aims to determine the effect
of two or more variables. A quantitative approach is used because the data will be
used to analyze the influence between variables is expressed in numbers. The
research was conducted at the PT. Telkom Indonesia Regional 7 Jalan A.P. Pettarani
No. 4, Gn. Sari, Rappocini District, Makassar City.

Population and Sample

As for the population in this study, all Wifi Id customers at PT. Telkom Indonesia
Regional 7 in Makassar with a total of 2,916 customers. Meanwhile, to determine the
sample, the slovin formula was used with an error rate of 0.05 (5%), so that a sample
of 352 respondents was obtained. The sampling technique used is the Simple Random
Sampling method, namely the sampling of members of the population is done
randomly without regard to the existing strata in the population.

Data Collection Method

Data collection techniques are the most important step in research, because
the main purpose of research is to get data. The collection technique in this study was
carried out through observation, interviews, questionnaires and literature study.

Data Analysis Method

Data analysis techniques using research instrument tests consisting of validity
tests and reliability tests. Classic assumption test with 3 tests namely: normality test,
multicollinearity test, and heteroscedasticity test, multiple linear regression analysis
with the SPSS 22 program to determine the relationship and influence of each service
quality variable and product quality on customer satisfaction with the formula:
Y=βo + β1.X1+β2.X2+e ………………………………………. (1)
D. EMPIRICAL RESULTS
Validity and Realibility Test
The instrument test in this study can be classified into two, namely the validity
test and the reliability test. For more details, it can be described as follows:
a. Validity Test
Validity test is used to determine the feasibility of question items in defining a
variable. If the item score has a significant positive correlation, it means that the item
can be used as an indicator to measure the variable. The results of the validity test of
the service quality variable obtained an rcount value of 0.598-0.644. In the product
quality variable, the rcount value is 0.281-0.710. In the customer satisfaction
variable, the rcount value is 0.504-0.675. Because the rcount value is greater than
the rtable value (rcount > 0.1381), it can be concluded that the indicators or
questionnaire used by each variable are declared valid, so that further analysis can
be carried out.
b. Realibility Test

202 Scientium Management Review Vol. 1 no. 3. 2022

Reliability Test is a tool for measuring a questionnaire which is an indicator of a
variable or construct. A questionnaire is said to be reliable or reliable if one's answers
to a statement are consistent or stable from time to time. A construct or variable is
said to be reliable if it gives a Cronbach's alpha value greater than the rtable value
(0.1381. The results of the reliability test calculation show that each variable, namely
service quality, product quality and customer satisfaction, has a Cronbach's alpha
value greater than the rtable value. (0.1381), so it can be concluded that all
instrument measurements are reliable and can be used to carry out further analysis.

Multiple Linear Regression Analysis

Multiple linear regression analysis was used to examine the effect of service
quality (X1) and product quality (X2) on customer satisfaction (Y) both
simultaneously and individually/partially. The results of multiple linear regression
analysis calculations using the SPSS version 22 program are presented in the
following table.

Table 1. Multiple Linear Regression Analysis

Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta
1 (Constant) 1.557 .178
Service Quality .347 .042 .367
Product Quality .353 .039 .402
a. Dependent Variable: Customer Satisfaction.
Source: Processed results of SPSS data

In accordance with the results in the table above, a multiple linear regression
equation model can be created for this study as follows:

Y = 1,557 + 0,347 X1 + 0,353 X2

The equation above shows that: Constant value = 1.557; meaning that by
assuming the independent variable constant, the value of customer satisfaction at PT.
Telkom Indonesia Regional 7 of 1.557 units; If there is an additional service quality
value (X1) of 1 unit, it will increase customer satisfaction at PT. Telkom Indonesia
Regional 7 of 0.347 units assuming other variables are constant. If there is an
additional product quality value (X2) of 1 unit, it will increase customer satisfaction
at PT. Telkom Indonesia Regional 7 of 0.353 units assuming other variables are
constant.

The magnitude of the relationship between variables can be seen by looking at the
correlation coefficient (R). From the table it can be seen that the value of R = 0.642,
this means that the relationship between the variables of service quality and product
quality with customer satisfaction at PT. Telkom Indonesia Regional 7 is positive and
the relationship is moderate.

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 Table 2. Regression Coefficient
Adjusted R Std. Error of the Durbin-
Model R R Square Square Estimate Watson
1 .642a .412 .409 .27768 1.946
a. Predictors: (Constant), Product Quality, Service Quality
b. Dependent Variable: Customer Satisfaction
Source: Processed results of SPSS data
Then to find out the effect of other variables, the value of R2 (coefficient of
determination) shows the magnitude of the contribution of the independent variable
to the dependent variable in a model. The calculation results presented in the table
above show the value of R2 = 0.412. This means that 41.2% of the variation in the
ups and downs of customer satisfaction at PT. Telkom Indonesia Regional 7 is
determined or influenced by service quality and product quality. While the remaining
58.8% is influenced by other variables not examined or not included in this model.
Hypothesis Test

Hypothesis test is carried out with 2 tests, which are used to test the effect of
the independent variables on the dependent variable partially or individually.
Technically the test is carried out by comparing the tcount value with the ttable value
at the significance level α = 0.05. Based on the calculation results in the appendix, the
partial test results (t-test) can be presented in the following table.
Table 3. Partial Test Results (t-test)

No. Variabel Nilai thitung Sig. Kesimpulan

1. Service Quality (X1) 8.214 .000 Significant
2. Product Quality (X2) 9.004 .000 Significant
ttabel= 1,980➔t(α/2; n-2) = t(0,05/2; 352-2) = t(0,025; 350) = 1,980 => u/ 2 arah
n = 352
α = 0,05
Source: Primary data processed, 2022.

The results of the partial test (t-test) which are summarized in the table above
can be explained as follows: The t-count value of the service quality variable (X1), is
greater than the t-table value (8.214 > 1.980) and its significance value (sig.) smaller
than the required (0.000 < 0.05). These results indicate that service quality has a
positive and significant effect on customer satisfaction at PT. Telkom Indonesia
Regional 7 (first hypothesis proven or accepted).
The t-count value of the product quality variable (X2), is greater than the t-table value
(9.004 > 1.980) and its significance value (sig.) is smaller than the required (0.000
<0.05). These results indicate that product quality has a positive and significant
effect on customer satisfaction at PT. Telkom Indonesia Regional 7 (second
hypothesis proven or accepted).
Then a simultaneous test (F-Test) is used to test the significance of the influence
of the independent variables on the dependent variable. The testing technique is
carried out by comparing the Fcount value with the Ftable value at a significance level
of 0.05 and a level of confidence of 95%.
Table 4. Simultaneous Test Results (Test F)

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 Sum of
Model Squares Df Mean Square F Sig.
1 Regression 18.868 2 9.434 122.353 .000b
Residual 26.910 349 .077
Total 45.778 351
a. Dependent Variable: Customer Satisfaction
b. Predictors: (Constant), Product Quality, Service Quality.
In connection with the calculation results of the multiple linear regression
analysis presented in the table above, it can be seen that the Fcount value is greater
than the Ftable value (122.353 > 3.04), and the calculated significance value (sig) =
0.000 which is smaller than the value α = 0 ,05. These results prove that
simultaneously or together the service quality and product quality variables have a
positive and significant influence on customer satisfaction at PT. Telkom Indonesia
Regional 7 (the third hypothesis is proven or accepted).

E. DISCUSSION
The Effect of Service Quality on Customer Satisfaction
Based on the results of data analysis in this study, it shows that service quality has a
positive and significant effect on customer satisfaction at PT. Telkom Indonesia Regional 7 .
This means that the existence of service quality which includes tangible, reliability,
responsiveness, assurance and empathy can affect customer satisfaction. The better the
quality of the services provided, the more impact it will have on increasing customer
satisfaction. (Wijaya, 2011: 152) states that service quality is a measure of how well the level
of service provided is able to match customer expectations. Service quality is very important
for companies because it will attract customers to buy the products offered. Service quality
that meets customer expectations will create a sense of satisfaction in customers, this
satisfaction results in customers deciding to continue buying the products offered. If the
quality of service provides something that is in accordance with the customer's perception,
the higher the satisfaction felt by the customer. The results of this study are relevant to the
results of research conducted by Rina Martiana and Sheli Apriani (2019) who found that
there is a positive and significant influence between service quality and customer satisfaction
at Cafe Deumdee Rangkasbitung. Likewise the results of research conducted by Handayani
Natalia Siregar and Arlin Ferlina Mochamad Trenggana (2016) found that partially service
quality has a significant effect on customer satisfaction at KFC Buah Batu Bandung Branch.
The Effect of Product Quality on Customer Satisfaction

Based on the results of data analysis in this study, it shows that product quality
has a positive and significant effect on customer satisfaction at PT. Telkom Indonesia
Regional 7 . This means that the existence of product quality which includes
performance, product features, reliability, compliance with specifications, durability,
repairability, aesthetics and perceived quality can affect customer satisfaction. The
better the quality of the product provided, the more impact it will have on increasing
customer satisfaction. Kotler and Armstrong (2012: 27) state that product quality is
the ability of a product to carry out its functions, including reliability, durability,
accuracy, ease of operation and product repair and other valuable attributes. One of
the main factors that must be considered by the company is product quality where
customers will be satisfied if the results of their evaluation show that the products they
use are of high quality. So the better the quality of the product, the higher the

Scientium Management Review Vol. 1 no. 3. 2022 205

satisfaction felt by the customer. According to Selnes (1993) in Jonson (2006)
customer satisfaction is very dependent on how the quality level of the product offered.
Therefore product performance as perceived by customers affects customer
satisfaction. The results of this study are relevant to the results of research conducted
by Rina Martiana and Sheli Apriani (2019) who found that there is a positive and
significant effect between product quality and customer satisfaction at Cafe Deumdee
Rangkasbitung. In line with what has been found by Theresia Cahya Setiani (2019)
found that product quality has a positive and significant effect on customer satisfaction
at the English First Surabaya Education Institute. Likewise the results of research
conducted by Mahira, Prasetyo Hadi, and Heni Nastiti (2021) found that product
quality has a significant effect on Indihome customer satisfaction.

The Effect of Service Quality and Product Quality on Customer Satisfaction

Based on the results of data analysis in this study, it shows that service quality
and product quality simultaneously have a positive and significant effect on customer
satisfaction at PT. Telkom Indonesia Regional 7. The better the service quality and
product quality provided, the more impact it will have on increasing customer
satisfaction. This is in accordance with the theory put forward by Kotler (2010)
regarding customer satisfaction, namely the level of one's feelings after comparing
product performance or results that he feels with his expectations. This means that
customer satisfaction will be achieved when product quality and service quality have
been felt. Customer satisfaction is a major milestone in the success of a company.
Customer satisfaction is a person's feelings of pleasure and disappointment that arise
after comparing the performance (results) of the product that is thought of against the
expected performance (Kotler & Keller, 2014: 177). Customer satisfaction can be
measured using several indicators, namely repurchasing, word-of-mouth, creating
images and brands and making purchasing decisions at the same company. The results
of this study are relevant to the results of research conducted by Rina Martiana and
Sheli Apriani (2019) who found that there is a significant influence between product
quality and service quality on customer satisfaction at Cafe Deumdee Rangkasbitung.
Likewise the results of research conducted by Handayani Natalia Siregar and Arlin
Ferlina Mochamad Trenggana (2016) argue that simultaneously service quality and
product quality have a significant effect on customer satisfaction at KFC Buah Batu
Bandung Branch. In line with the research results of Mahira, Prasetyo Hadi, and Heni
Nastiti (2021) found that service quality and product quality have a significant effect
on Indihome customer satisfaction.

206 Scientium Management Review Vol. 1 no. 3. 2022

F. CONCLUSION

Based on the description and results of the research analysis, it can be concluded
that service quality has a positive and significant effect on customer satisfaction.
Product quality has a positive and significant effect on customer satisfaction. Service
quality and product quality have a positive and significant effect on customer
satisfaction at PT. Telkom Indonesia Regional 7.

Acknowledgements
The completion of this thesis was due to the assistance and guidance from the
main supervisor, Prof. Dr. H. Djabir Hamzah, M.A. and assistant supervisor Mrs. Dr.
Wahda, S.E., M.Pd., M.Sc., and the team of examiners who have guided and directed
the improvement of this thesis, as well as the Head of PT. Telkom Indonesia Regional
7 and also Wifi Id customers who have participated in filling out this questionnaire.

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