The Mediating Role of Customer Satisfaction and Brand Trust between the Relationship of Perceived Value and Brand Loyalty

Abstract

Aims: This study aims to determine the mediating effect of customer satisfaction and brand trust between perceived value and brand loyalty of telecommunications services. Study design: Research paper. Place and Duration of Study: This research was conducted on telecommunication service product users in Aceh province, between 2019 to 2021. Methodology: The population in this study are telecommunication service customers in Aceh Province. Meanwhile, the sampling method used a purposive sampling approach, with a total sample of 304 telecommunication service users. The data analysis method used in this study is a quantitative approach consisting of Structural Equation Modeling (SEM) with Amos 2.2 and Sobel Test for testing the mediating effect. Results: This study finds that perceived value significantly influences customer satisfaction and brand trust (P-Value 0,000), which means that telecommunications service providers must always provide products with values that exceed customer expectations to increase customer satisfaction and trust. Then, customer satisfaction and brand trust have a significant effect on brand loyalty (P-Value 0,000 and 0,013). It means that telecommunications service providers must always evaluate the conditions of customer satisfaction and increase customer trust in the brands of telecommunications service to increase customer loyalty to the brand. Besides, perceived value also affects directly and indirectly on brand loyalty through customer satisfaction and brand trust. Conclusion: The results showed that perceived value, customer satisfaction, and brand trust had a significant effect on brand loyalty to telecommunication services in Aceh Province. Furthermore, customer satisfaction and brand trust can mediate the relationship between perceived value and brand loyalty of telecommunication services in Aceh Province.